King Henry VIII, the young and ambitious monarch of England, prepares for war with France but is dissuaded by the diplomatic manipulation of his powerful Lord Chancellor, Cardinal Wolsey, who proposes that the King sponsor a "Treaty of Universal Peace." The harmony of the King's domestic affairs is threatened, however, when he discovers that Elizabeth Blount, the young and beautiful lady-in-waiting to his Queen, Katherine of Aragon, is pregnant with his child.

The King asks Charles to escort his sister, Margaret, to her betrothed and promotes him to Duke of Suffolk. The envoys from the Holy Roman-Emperor meet with Cardinal Wolsey and determine how to cement the treaty between the two nations. Anne catches the King's notice in a play. The Emperor is invited to the King's court. It is learned that the King of France knows of the treaty talks- and the Cardinal is quick to find a scapegoat. We learn more of why Anne's father and uncle want her to seduce the King.

As a reward for his denunciation of Martin Luther, the Pope christens Henry "Defender of the Faith," but a brush with death causes the king to seek a solution to his lack of an heir. Princess Margaret marries the decrepit King of Portugal reluctantly, but the union is short-lived; Henry's desire for Anne Boleyn intensifies.