The narrative opens with a weary stag fleeing hounds through the wild landscapes of the Scottish Highlands, leading an unknown knight, James Fitz-James, deep into the Trosachs near Loch Katrine. Stranded and exhausted, the knight finds shelter in a secluded sylvan lodge inhabited by Ellen Douglas and her kinsfolk, exiles hiding from the wrath of King James. Fitz-James falls deeply in love with the graceful maiden, unaware of her true lineage or her ties to the outlawed house of Douglas. The arrival of Roderick Dhu, the fierce chieftain of Clan-Alpine, introduces intense political and romantic rivalry, as Roderick demands Ellen's hand to solidify a tribal alliance against the crown.
Ellen's heart, however, leans toward the young Malcolm Graeme, intensifying the bitter feud between the clans. As political tensions mount, the fiery cross is sent through the glens to summon Clan-Alpine to war, and the secluded retreat of the exiles is compromised. Fitz-James departs after giving Ellen a ring that promises any boon from the King.
Meanwhile, war breaks out between the royal forces and the mountaineers. In a desperate bid for peace, Douglas surrenders himself to the King in Stirling to save his followers, while Roderick Dhu meets Fitz-James in a brutal single combat at Coilantogle ford. Roderick is mortally wounded and captured, and the narrative moves toward the royal court at Stirling, where hidden identities are finally revealed.