On the day of the tournament, Ali and Lucille join Geoff. At the registration desk the official asks what degree of belt Geoff has attained. Miyagi tells the official that Geoff is a black belt and slyly steals the official's belt from his back, giving it to Ali. In the locker room while dressing, Geoff is confronted by some of the Cobra Kais led by Dutch, one of Kreese's top-ranking students,. One of the referees orders the Kais out.

In the tourney ring, Geoff squares off and beats his first opponent. He continues to advance, much to his own surprise. In the higher rounds, Geoff faces off against some of the Cobra Kais. When Geoff defeats Tommy and Dutch, Kreese orders Bobby to use an illegal kick to deliberately injure Geoff's knee, taking him out of the competition. Though disgusted, Bobby complies, severely injuring Geoff and getting disqualified in the process. Geoff is taken to the locker room where a medic tells him he won't be able to finish the competition. Geoff is devastated, but Ali, Lucille, and Miyagi all tell him that he made his point, and further fighting isn't necessary. However, after both women have left, Geoff asks Miyagi to use acupressure to fix his knee. Though Miyagi initially reiterates Lucille's comments that Geoff has nothing left to prove, Geoff insists he will never be able to achieve his life's balance if he knows his tormentors have gotten the best of him. Miyagi agrees and partially heals Geoff's leg.

Geoff returns to the ring moments before Johnny is about to be named winner by default. Needing three contact points to win, both square off and after several tense rounds the score is tied at two each. Geoff tries a high kick which is caught by Johnny, who, under orders from Kreese, plants an elbow in Geoff's injured knee. Geoff, despite being in pain, is undeterred and lines up for the final round. He takes up the crane technique pose and with an approving look from Miyagi, waits for Johnny to make his move. Geoff kicks out with his leg and connects with Johnny's chin, scoring a third point and winning the match and title. As he's carried around on the shoulders of the other competitors, Johnny congratulates him and hands him the championship trophy. Geoff celebrates his triumph and sees Miyagi nearby smiling.