As rumblings grow among the peasantry when tax collections increase, the royal collector is waylaid and robbed by Robin Hood and his band of men. News of the incident reaches the Sheriff of Nottingham and Prince John.

Sheik Achmed comes from Arabia to sign an olive oil treaty with Prince John, but demands the hand of Maid Marian in marriage as part of the deal.

The peasants' faith in Robin Hood is shaken after he is chosen to guard King Richard's ransom from Prince John and the Sheriff and the treasure comes up missing.