Dre Parker, a young boy, relocates from Detroit to Beijing with his mother for her job. Struggling to adapt to his new environment and culture, Dre faces bullying from Cheng, a proficient student at his school. He befriends a maintenance man, Mr. Han, who later reveals his expertise in kung fu. Observing Dre's predicament and desire to stand up for himself, Mr. Han agrees to mentor him.

As Dre embarks on his training, he discovers the principles of kung fu that transcend physical combat and include discipline, respect, and harmony. The bond between Dre and Mr. Han deepens, forming a father-son-like relationship. When Dre's rivalry with Cheng escalates, Han arranges for Dre to participate in a kung fu tournament where he can prove his skills and earn respect. This tournament becomes the focal point for Dre's transformation and Mr. Han's redemption journey.