Miyagi, Daniel, and Taki go to Paris, where they follow a man named Mr. Whiskers, who is trying to buy the shrine. When they lose the shrine, Daniel goes to a fortune teller for help.

The search for the shrine brings Daniel back to his old neighborhood and his first girlfriend.

While in London, United Kingdom, the trio get hired on a movie set about King Arthur, where Miyagi finds the power of the shrine has been drained into a prop sword, which is used by the film's leading man who then cannot separate reality from fantasy and thinks Taki is his actual bride, and Daniel is threatening him.

Miyagi, Daniel, and Taki travel to Hong Kong and help the village fight off the Dragon and his evil henchmen.

After a padre in Mexico hides the shrine in a Mayan temple, it's up to Mr. Miyagi to keep it out of the hands of Madero, and evil bandit.

Miyagi, Daniel and Taki travel to the Soviet Union where Prof. Kirov is studying its magical powers.

Miyagi and company follow the magic rainbow to a mountain paradise in the Himalayas where the stone has turned a well into the Fountain of Youth.

Taki returns the shrine to her temple, but a thousand year feud between her family and the Ishida's makes them lose the shrine once again.

Mr. Miyagi and friends follow the shrine to Australia where a tribe of Aborigines believe it should be offered to the god of the volcano.

Mr. Miyagi has traced the shrine down to the coast of Norway where a whale has swallowed it and is attacking illegal whaling ships.

Daniel befriends a young boy and pases on Miyagi's teaching in order to help him restore his position as Chief of the tribe.

The search for the shrine brings Miyagi and friends to San Francisco where they join a group of senior citizens in a car rally, hoping it will ultimately lead them to the shrine.

Miyagi and friends discover that the shrine has fallen into the hands of a lonely boy who is using it to make his own little world.