Jim Kelly plays Jones, a secret agent who has gone into semi-retirement, concentrating instead on teaching the martial arts to inner city youths. The karate school is run by a kindly old coot named Pops (Scatman Crothers). His gambling debts, however, bring the local thug, Pinky, down on him. To make matters worse, Pinky is then hired by some white thugs who want to get ahold of the property Pops' school occupies so they can build a shopping mall. When things get heavy, Black Belt Jones leaps into action. Only he's not alone. Pops' daughter, Sidney, shows up to lend a hand, proving herself every bit as agile and powerful a martial artist as Jones.