A disparate group of travellers take shelter from stormy weather at the home of Cedric of Rotherwood. Dark deeds are afoot when one of them is believed to be carrying gold coinage. Elsewhere, more dark deeds are afoot as Prince John is plotting to take the English crown while King Richard is reportedly held captive in Austria.

The thus far anonymous pilgrim saves Isaac's life and is rewarded with the horse and armour to become the masked knight. He then defeats Sir Brian de Bois Guilbert at a jousting tournament and takes Gurth as his squire. Returning from an errand to Isaac, Gurth is waylaid by a band of outlaws.

Gurth fights for his purse. At the tournament, the masked knight shows his favour to Rowena. The masked knight, with the help of the Black Knight defeats Sir Brian de Bois Guilbert. On the command of Prince John, the identity of the masked knight is revealed and in the ensuing shocked reaction of the crowd, the knight disappears with the help of Isaac and Rebecca.

Prince John continues with his plan to take the English throne while his men hunt for the injured Sir Wilfred of Ivanhoe, being sheltered by Isaac and Rebecca. At a feast hosted by Prince John, tensions escalate between Normans and Saxons. Sir Maurice de Bracy intends to win the favour of the Lady Rowena but first he has to disguise his men as outlaws.

Cedric and Isaac with their caravan are captured by the Normans and taken to Torquilstone Castle. De Bracy recognises Ivanhoe but stays silent for the moment. At the castle, Rowena is reunited with Ivanhoe. Elsewhere, the Black Knight is allied with Locksley and his men to besiege the castle.

Preparations are being made to storm Torquilstone Castle. A ransom note is delivered and a plan is hatched to free Cedric while at the same time learn the defences of the castle. Athelstane regrets a deal with the Normans while Rebecca continues to tend the injured Ivanhoe. The assault on the castle begins.

The Black Knight and Cedric lead the assault on the castle aided by Urfried on the inside who exacts her revenge on the Normans. Rebecca and the injured Ivanhoe are still prisoners. Cedric and Ivanhoe are briefly reunited and Sir Brian escapes with an important hostage. Ivanhoe also disappears but Malvoisin is on his trail.

A fortunate interruption saves Ivanhoe. Sir Brian seeks refuge for himself and Rebecca at Templestowe Abbey even though women and especially non-Christians are forbidden and the Grand Master is arriving shortly. The Normans trailing the outlaws are intercepted and Cedric and Rowena set off for Coningsburgh. Isaac makes a deal to rescue Rebecca.

Prince John learns that King Richard is in England. The Grand Master learns that Rebecca is at Templestowe and is charged with witchcraft. Fitzurse is on the trail of King Richard but Locksley and his men are summoned to the rescue. The Grand Master presides over the trial of Rebecca but in desperation she sends a messenger to Ivanhoe.

Rebecca is found guilty and awaits her fate. The Black Knight reveals his identity to all and Prince John is exiled to Aquitaine. Sir Brian considers a way out for himself and Rebecca but the Preceptor has another solution. The Saxons gather at Coningsburgh for Athelstane's funeral. On the day of Rebecca's execution a knight rides to the rescue and Sir Brian realises that at the end of the joust, either he or Rebecca will have a way out.