The Karate Kid is a video game developed by Atlus and published by LJN for the Nintendo Entertainment System.

For every few enemies dispatched, Daniel can collect large "C" and "D" symbols that allow him to use Crane Kicks and Drum Punches, respectively.

There are also a few obvious and not-so-obvious entrances where Daniel can earn Drum Punches and Crane Kicks by either breaking ice-blocks, catching flies with chopsticks, or dodging a swinging hammer.

Daniel wears a new outfit for this stage and the random enemies are now tougher, requiring two hits to be felled.

An image of Mr. Miyagi's head appears and is animated to look as if he's talking and saying: "You have successfully guided Daniel-san through all the challenges and have become a martial arts master!".