Daniel: You could have killed him, couldn't you?
Mr. Miyagi: Aiy.
Daniel: Well, Why didn't you?
Mr. Miyagi: Because Daniel, for man with no forgiveness in heart, life worse punishment than death.

[Walking through the Okinawa airport, Daniel and Miyagi find a poster advertising Sato's karate school. The poster shows Sato breaking a log with his bare hands.]
Daniel: You think you could break a log like that?
Miyagi: Don't know. Never been attacked by a tree.

Daniel: If you and Sato fought, would your father be the referee?
Miyagi: No referee.
Daniel: Then how do you know who wins?
Miyagi: The one who's dead, doesn't.

Miyagi: Daniel-san, never put passion before principle. Even if win, you lose.

Daniel: Don't those lies bother you?
Miyagi: no
Daniel: Why not? people might think that they are true.
Miyagi: Lies only become true if person choose to believe.
Daniel: Is that another old Okinawa saying?
Miyagi: no. New Okinawa saying.
Daniel: How new?
Miyagi: lets see... (pauses pretending to think) About ten seconds!

[After Daniel has won his first tournament]
Daniel: Hey Mr. Miyagi, you know I've been thinking.
Mr. Miyagi: About what, Daniel-San?
Daniel: That we should come up with some kind of strategy.
Mr. Miyagi: For what?
Daniel: My future, my whole tournament career.
Mr. Miyagi: Miyagi already have one.
Daniel: Really? What is it?
Mr. Miyagi: Early retirement.

[After Daniel complains about having to spend the summer in Fresno]
Daniel: Hey, what are you building out there?
Mr. Miyagi: Guest room.
Daniel: Are you expecting company?
Mr. Miyagi: Nah, refugee.
Daniel: Refugee?! Oh yeah, that's great! From where?
Mr. Miyagi: Fresno.

Chozen: Your student disgrace me. I have been dishonored all because of him.
Daniel: Hey, whatever happened, I apologized!
Chozen: Apology will not give me back my honor.
Daniel: Well, neither will this!
Chozen: In their eyes it will. No more talk! You cross bridge or I kill her!
[Daniel starts to cross the bridge]
Mr. Miyagi: Daniel-San, this not tournament. This for real.