Bobby unveils a new robot sensei, which greatly improves the gang's performances. Rudy is fired, but when the robot starts pushing them too hard, they try to get Rudy back. Milton and Eddie create their own robot.
Milton and Jerry both run for class president at school. Milton becomes school president and transforms into Abraham Lincoln. Meanwhile, Rudy hires Kim as his assistant director for the community theater's production of "Romeo and Juliet."
Carson, an old friend of the gang and Rudy's former star student, returns to Seaford. His own martial arts moves prompt Rudy to replace Jack with Carson in the upcoming tournament, annoying Jack.
Rudy makes the hardest decision of his life, when his Uncle Blake offers him a high profile job so Bobby Wasabi sells the dojo to Ty and the Black Dragons. After Ty downgrades the Wasabi Warriors, they quit and go their separate ways.