Carter is an assassin hired by the Sheriff of Nottingham, ever-scheming to rid himself of Robin Hood. In addition, Carter is to retrieve the great pact of Nottingham. Carter sets out in pursuit of Robin and his men.
The Sheriff sends out several guards to ransack the nearby town of Clun, hoping to draw Hood to the scene, where Carter will be waiting.
Meanwhile, following the death of Lady Marian's father, Marian has joined the outlaws. She brings a new exuberance and impatience to the group that both inspires them and catches them by surprise. Robin, however, is not pleased with her rash decisions that may put them all in danger.
While the gang watches the village of Clun being destroyed, Marian rushes in to fight. Robin, realising that she could very well be killed, goes in after her and ties her up to a shed while he pushes back the Sheriff's guards.
As they fight, Carter arrives and kills a number of the guards, saving Robin and the village. Oblivious that Carter has been hired by the Sheriff to kill him, Robin takes a "wounded" Carter back to the camp.
In Robin's absence, Carter takes all of Robin's gang hostage, and he and Robin end up fighting. It is revealed that Carter has a personal vengeance towards Robin, holding him responsible for his brother's death in the Holy Land. After being told the painful truth of the incident (that his brother was a glory-hungry fool who led a suicidal attack on a Saracen camp, and that Robin risked his own life in a failed effort to save his brother), he offers to help Robin by using the reward money for his job and giving it to the village of Clun. Robin agrees, and the gang formulate a plan to return to the sheriff complete with pact and Robin.
Back at the castle, Guy has sent Allan to track run-away Marian down. Allan finds Marian alone back at the camp, and offers to help her avoid Guy. Allan tells Guy that Marian cannot return to the castle because she has become a nun.
In the forest, Djaq uses a potion to reduce Robin's breathing to a minimum, making him appear dead to onlookers. With Carter in the lead, Robin is wheeled through the streets of Nottingham, and proclaimed dead. The gang tag along, dressed as mourners.
At the castle gate, Guy comes out to see Robin's body. To make sure he is really dead, he draws his sword to slit Robin's neck. Just as the blow is about to be given, Marian bursts through the crowd, asking Guy for a private meeting with him immediately. He agrees.
As Robin is taken into the castle, Marian and Guy shut themselves into a room and talk. Marian tells Guy that she wants him to leave her alone, that she needs time to grieve her father's death. He doesn't believe her; as she pushes him back, he grabs Marian and close to tears, he asks her to grieve by "coming home".
Allen then bursts in to inform them that the Sheriff is preparing to put Robin's head on a spike. Rushing to the door, Marian spots Much and Will rushing down the hall, about to be sighted by Guy. She distracts him by pulling him into a passionate kiss.
As the sheriff is making plans for Robin's dead body, Carter administers the potion to bring him back to life. Robin and Carter take the reward money, deal with the Sheriff and run from the room.
Upon sighting Guy holding Marian in a room along the hall, Robin beckons her to come away. She leaves Guy, saying that she must return to the convent or risk being missed.
Back at camp, the gang sees Carter off. Robin and Marian agree a truce from their bickering, and they are shown clasping hands as Carter rides away into the distance, heading for the Holy Land to help King Richard, and warn him what is going on back in England.