Full of anger, Miguel practices his punches waiting outside of the All-Valley Tournament. The kids from Cobra Kai are waiting for Sensei Lawrence to show up, but one of the kids thinks he might not show up, as Johnny was seen extremely drunk the night before. As Hawk is saying that they’ll just have to do the tournament without their sensei, Johnny walks up, saying he never backs out. Johnny says he needs to teach them the last rule of Cobra Kai: No mercy. He explains that life shows no mercy, and gives examples from his own life, including his recently set-on-fire car.
Sam and Daniel decide to sit at home instead of going to the All-Valley Tournament. Amanda comes in and says she doesn’t want to go by herself. Since LaRusso Auto is one of its biggest sponsors, someone from LaRusso needs to show up to the event. Sam tells her father that she’ll go if he wants to. Sam says everyone she knows will be there, and Daniel points out that it is the 50th anniversary. They head to the tournament, and Daniel says they’re only staying for a few matches. Daniel walks in to applause, as a former champion. He sees a banner of himself in his youth.
All of the participating dojos are announced. Entering unaffiliated, Robby walks out. Daniel is thrown, but throughout the tournament, we see Daniel trying to cover up how much he’s rooting for Robby.
Sam and Aisha make up after all they’ve been through. Aisha hints that Sam should join Cobra Kai. After Sam says her father would kill her, Aisha says they could definitely use another girl competing in the tournaments.
The four semi-finalists are Miguel, Hawk, Robby, and returning champ, Xander. Miguel defeats Xander and Robby wins his round after an illegal kick disqualifies Hawk. After medic assistance, Robby is ready to head to the finals against Miguel.
Robby scores the first point, but Miguel wins overall. Cobra Kai celebrates, and Johnny fights back his concern for Robby. His student was fighting the way he taught them.
After leaving the tournament early, and feeling done with Miguel, Sam walks into her father’s dojo and does some flips, ready to get back into karate, as Aisha suggested.
Daniel drives a disappointed Robby home and tells him that he’s proud of him. He takes Robby to Mr. Miyagi’s old house. He’s opening it as a dojo for Miyagi-Do Karate.
Johnny drinks alone with Cobra Kai’s trophy. He hears someone enter the dojo and looks out to see who is there. It’s his sensei, Kreese. He congratulates Johnny on bringing Cobra Kai back into the light. Johnny’s not exactly thrilled to see his old teacher.
All this set up for season two! Has Johnny’s viewpoint already changed, or will he let Kreese push him back into ‘No Mercy’? Will Miguel’s attitude only get worse under Kreese’s advisement? Will Sam compete next tournament? Cobra Kai has already been renewed for season two, so we will get answers!