The movie is narrated by the rooster Alan-a-Dale. He explains that Robin Hood and Little John live in Sherwood Forest, stealing from the rich and giving to the poor townsfolk of Nottingham. The Sheriff of Nottingham and his posse often try to catch the two but fail every time. Meanwhile, Prince John and his assistant Sir Hiss, arrive in Nottingham. Sir Hiss hypnotized Prince John's brother King Richard to go off on the Crusades, allowing Prince John to take the throne. Unfortunately, the prince is greedy and immature, even sucking his thumb whenever his mother is mentioned. Robin and Little John rob Prince John by disguising themselves as fortune tellers. This results in the prince putting a bounty on their heads and making the Sheriff his personal tax collector.