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After Rocky (Stallone) returns home from his latest triumph, he learns that all his money has been lost by an unscrupulous financial advisor. To make matters worse, his fight-related injuries force his retirement from the ring. So Rocky, his wife Adrian (Talia Shire) and his son Rocky Jr. (Sage Stallone) move to their low-rent neighborhood in South Philadelphia. There Rocky must resolve the deep-rooted resentment held by his son, a bitterness that grows when Rocky trains Tommy Gunn (Tommy Morrison), a young boxer who soon rises to national prominence. When Tommy turns against his mentor and publicly taunts him, Rocky knows he must fight once more.