Warning: SPOILERS for Cobra Kai season 3.
The Cobra Kai season 3 ending sets up the biggest dojo war ever that will happen at the All Valley karate tournament in season 4. However, it was the long-awaited return of Ali Mills Schwarber (Elisabeth Shue) that finally brokered a truce between Johnny Lawrence (William Zabka) and Daniel LaRusso (Ralph Macchio). Just as the eternal high school rivals have chosen to work together to stop John Kreese (Martin Kove), their students from Daniel's Miyagi-Do and Johnny's new Eagle Fang dojos have also united against Cobra Kai's most fanatical bullies.
While Johnny, Ali, Daniel, and his wife Amanda (Courtney Henggeler) were at a country club Christmas party reminiscing about their good old days of high school in 1984's The Karate Kid, Cobra Kai's Tory Nichols (Peyton List) and Eli "Hawk" Moskowitz (Jacob Bertrand) led a home invasion of the LaRussos' home. Cobra Kai attacked the combined students of Miyagi-Do, led by Samantha LaRusso (Mary Mouser), and Eagle Fang, led by Miguel Diaz (Xolo Mariduena), and another incredibly violent brawl erupted that tore apart Daniel's home. Although Cobra Kai had the upper hand, Hawk, who was having doubts about the bully Kreese had turned him into throughout the season, decided to turn on his dojo and help his oldest friend, Demetri (Gianni Decenzo). Tory finally relented and Cobra Kai retreated when she saw Hawk standing with a bloody Miguel, Demetri, and Sam.
When Daniel and Johnny realized what happened, they each went to the Cobra Kai dojo to settle their issue with Kreese once and for all. Johnny arrived first and beat Kreese but he was heartbroken to find his estranged son, Robby Keene (Tanner Buchanan), had joined up with his evil former teacher. Daniel then joined the frey and he also beat Kreese; LaRusso contemplated finishing Cobra Kai's sensei off the way Mr. Miyagi refused to do in The Karate Kid Part II, but Miguel and Sam stopped him from doing the unthinkable. Kreese then made the challenge for Johnny and Daniel's students to face Cobra Kai at the next All Valley Under 18 Karate Tournament, with John promising that he would go away once and for all if Cobra Kai lost.
Realizing the only way they can finally be rid of John Kreese was to work together, Johnny and Daniel followed their students' lead and united their dojos, with both Miyagi-Do and Eagle Fang now training at Mr. Miyagi's home. Meanwhile, knowing what he's up against, Kreese called for backup, and Cobra Kai season 3's flashbacks filled in his Vietnam origin story. Cobra Kai season 3 ended with a "to be continued..." but there's a great deal to unpack throughout the season and the stakes of the Cobra Kai saga were raised to the highest they've ever been.
Cobra Kai Season 4's All Valley Tournament Will Settle Johnny and Daniel's Feud With Kreese
After the violence that erupted in the West Valley Brawl in Cobra Kai season 2's finale, the All Valley Under 18 Karate Tournament was, understandably, canceled by the city council. This was despite Johnny, Kreese, and Daniel attempting to argue for the tournament to resume, which reinforced how toxic and dysfunctional the three senseis are. It also showed how Kreese continues to escape punishment for the atrocities he directs Cobra Kai to commit by leaning on his military service record and playing into people's sympathies. However, it was Sam and Miguel, the former All Valley Champion who regained his mobility after his well-publicized injuries, that convinced the council to let the All Valley Tournament go forward.
If Kreese can be taken at his word (which is doubtful), a victory by Miyagi-Do or Eagle Fang at the All Valley Tournament will rid the Valley of Cobra Kai once and for all. Miguel is the defending champion, although he's still not fully recovered and at peak fighting form, and this will be Sam's first tournament. It will also be Tory's first competition, and the first time Robby will be fighting for Cobra Kai. Considering the appalling escalation of violence, the All Valley Tournament in Cobra Kai season 4 needs to settle this karate war because it's clear the hostilities between the teenagers has gone too far and can't continue like this.
Daniel Almost Used Miyagi's Secret To Do The Unthinkable
When Daniel went to Okinawa to save his car dealership business, Kumiko (Tamlyn Tomita) called in LaRusso's former enemy Chozen (Yuji Okumoto) to come to a shocked Daniel-san's aid. Chozen, who turned over a new leaf since his blood feud with LaRusso in 1985, gave Daniel a history lesson about Miyagi-Do karate that Mr. Miyagi withheld from him. In the past, the Miyagi family used their karate to defeat invaders to Okinawa, and Miyagi-Do has an ancient system of debilitating enemies' pressure points that Mr. Miyagi never showed Daniel - but Chozen taught it to LaRusso as part of his peace offering.
Daniel used Miyagi's secret attack to render Kreese immobile in Cobra Kai season 3's finale, and he was actually prepared to deliver the killing blow before Sam and Miguel got him to come to his senses. This moment called back to Miyagi humbling, but then sparing and humiliating Kreese at the start of The Karate Kid Part II, which is part of the reason why Kreese hates LaRusso and his late sensei so much. Will Daniel teach Miyagi's secret to his and Johnny's students and will it come into play once again Cobra Kai season 4?
Kreese, Johnny, And Daniel Each Have A Prized Pupil Leading Their Dojos
Robby Keene was the wayward and prodigal son who broke ties with Johnny, his father, and Daniel, his first sensei, because he believes they both betrayed him. Kreese, who needs strong fighters to bolster Cobra Kai's ranks, recruited Robby, and it was extra satisfying for him to have Johnny's son fighting for his side against his mortal enemies, Daniel and Johnny. Meanwhile, Miguel's loyalty to Johnny is without question and Sam will always be Daniel's number one student.
Going into Cobra Kai season 4, each sensei has two top students, and a favored son or daughter, leading their dojo: Kreese has Robby and Tony as Cobra Kai's prized pupils, Johnny has Miguel and Hawk as his two top Eagle Fang proteges, Daniel has Samantha and Demetri representing Miyagi-Do. With the various personal issues between the six kids, especially Robby vs. Miguel and Sam vs. Tory, as well as the problems between their friends like Chris (Khalil Everage), Mitch (Aedin Mincks), and Kyler (Joe Seo), a lot of scores need to be settled at the All Valley Tournament.
Only Ali Could Have Brought Daniel & Johnny Together
Cobra Kai has teased Ali since the beginning, but season 3 finally brought Daniel and Johnny's first love back - and Ali was worth the wait. The newly-divorced Ali Mills Schwarber definitely had sparks with Johnny, and Cobra Kai showed fans the chemistry between them that came before The Karate Kid (and that Johnny talked about to Miguel), along with a callback to Daniel and Ali's date at Golf N'Stuff. But Ali's true purpose in Cobra Kai season 3, as the woman who still knows both Daniel and Johnny best after all of these years, was to facilitate a detente between LaRusso and Lawrence.
Johnny and Daniel have repeatedly been on the verge of a truce only to go right back to their instinctive feuding, but only Ali could make the two "man-boys" who own competing karate dojos realize that they are, indeed, more alike than they think. Ali is also right that Lawrence and LaRusso see themselves in each other and they don't always like the reflection staring back at them. Ali was the breakthrough Johnny and Daniel's relationship needed, but whether their peace will last in Cobra Kai season 4, and if Ali returns to Los Angeles once again, which might complicate Johnny's burgeoning relationship with Miguel's mom Carmen (Vanessa Rubio), remains to be seen.
Miyagi-Do & Johnny's Eagle Fang Karate Have Joined Forces, But Will It Work?
A key event in Cobra Kai season 3 was Miguel finally learning about Mr. Miyagi and hearing Daniel's side of his feud with Johnny after getting Lawrence's take on The Karate Kid back in season 1. Sam showing Miguel around the Miyagi-D0 dojo, and Diaz melding into the iconography of The Karate Kid, was pivotal since Miguel and Johnny are essentially Cobra Kai's modern spin on Daniel and Mr. Miyagi's relationship.
However, Miguel and Sam are also right that there are lots of challenges they and their senseis have to overcome if Miyagi-Do and Eagle Fang are to work together to defeat Kreese and Cobra Kai. For one thing, Daniel/Miyagi's defensive style and Johnny's offense-minded system just don't mesh. There's also lingering animosity between the kids and, especially, LaRusso and Lawrence themselves, which they all must work through to succeed.
Kreese's Phone Call Sets Up Karate Kid 3 Villain Terry Silver
Realizing he needs backup now that LaRusso and Lawrence have teamed-up, Kreese made a pivotal phone call to an old Army buddy, which sets up the arrival of Terry Silver (Thomas Ian Griffith) in Cobra Kai season 4. Introduced in The Karate Kid Part III, Silver is a fellow special forces Vietnam vet and the wealthy owner of a company called Dyna-Tox, and he and Kreese once enacted an elaborate revenge plot on Daniel and Mr. Miyagi.
Cobra Kai season 3's flashbacks revealed how Kreese saved Silver's life from a Vietcong prison camp, earning his eternal loyalty. Despite Daniel and Johnny's newfound unity, Terry Silver - whom Johnny has never even heard of - potentially joining forces with Kreese in Cobra Kai season 4 could tip the scales in Kreese's direction once again.