In Hong Kong, a neighborhood has been threatened by a crime gang known as Dragon. A group of activists figure the shrine could help them defeat Dragon, but when the gang leader seizes the shrine, he uses it to brainwash people into being his hoods. Miyagi teaches that the way to deal with organized crime is through collective action, and the natives form a community watch group and help bring awareness of the misdeeds of Dragon.

In Paris, France, the trio is in pursuit of a smuggler known for his affinity for parfait a chocolate, as he is looking for the shrine. A man known as Amazing Roland pretends to be a clairvoyant to entertain tourists, but has been getting actual psychic visions. However, one such vision shows Mr. Miyagi's possible death, causing Daniel to panic. Mr. Miyagi convinces Daniel that fate must run its course.