Enter the Dragon revolves around 3 main characters; Lee, a man recruited by an agency to investigate a tournament hosted by Han, since they believe he has an Opium trade there. Roper and Williams are former army buddies since Vietnam and they enter the tournament due to different problems that they have. It's a deadly tournament they will enter on an island.

Kreese, his life in tatters after his karate schools was defeated by Daniel and Mr Miyagi, visits Terry, a friend from Vietnam. Terry is a ruthless business man and a martial arts expert, and he vows to help Kresse take revenge on Daniel and Mr Miyagi.

Picks up where the first movie (Karate Kid) leaves off. Mr. Miyagi and Daniel take a trip to Okinawa to visit Mr Miyagi's dying father. After arriving Mr Miyagi finds he still has feelings for an old love. This stirs up trouble with an old rival that he originally left Okinawa to avoid. In the mean time Daniel encounters a new love and also makes some enemies.