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Encamped in the Holy Land, the Crusaders are torn by the dissensions and jealousies of their leaders. The armys impotence is accentuated by the illness of their chief, Richard I of England. Meanwhile, a poor but doughty Scottish crusader known as Sir Kenneth, on a mission far from the camp, encounters a Saracen emir. After an inconclusive combat, he strikes up a friendship with the emir, who turns out to be Saladin himself. His alliance with the Moor will save him from more than one misfortune.
Carrying a mystical talisman, Saladin enters the camp of the Crusaders in disguise and cures Richard. When Sir Kenneth is later falsely dishonored, Saladin is in a position to intervene in his execution and receive him as his slave. Presenting the knight with the talisman, Saladin then arranges a plot for Sir Kenneth's vindication.