Training soldiers off in the countryside, Prince Richard is unaware that his father the King is ill. A messenger is sent to tell him, but scheming Prince John has him killed and a false message sent that causes Richard to go off to make a treaty with the unpredictable Lady Catherine. In the mean time, the King dies and John insists that in Richard's absence, he should become the new King.

Ali, a Saracen youth with a flair for conjuring – bit a fear of killing – is ordered to infiltrate Richard's camp and slay the monarch.

Out hunting, Richard and Gilbert finds the body of a murdered man — a discovery which leads them to a murderous knight responsible for several killings.

In a small backward town, Richard finds the locals living in fear of a hermit living in a nearby cave, who blackmails them with threats of invoking a supernatural power over their water supply. After seeing the beautiful Lady Diane, the hermit insists she marry him, or the land will go dry.

Under Richard's tutelage is knight in training Miguel of Navarre, but nights find the lad deep in debt to disreputable owners of a local gambling den. They threaten him with complete disgrace by exposure, unless he conspires with them in a plot to steal the crown jewels.