[5] In the fictitious European country of Savonia, the dashing Paul Valmar (Augustus Neville) enlists in the Hussars after the death of his mother.
After five years of service he is becomes a lieutenant and is appointed sword master to the regiment, causing jealousy amongst others, notably the young Prince Eugene von Strelsburg (George Parke) and the wealthy Captain von Scarsbruck (D. L. Dalziel).
Under the terms of her father's will, the Princess Astrea must marry, but is given the option of von Scarsbruck or a nunnery.
Astrea succeeds in stopping the fight, then the Crown Prince intervenes and puts Eugene and von Scarsbruck under arrest, banning all women from officer's quarters.
Astrea hears about this and rides to the duel just in time to see Valmar mortally wound his opponent.
The movie was the first to be shot at Cosens Spencer's new studio at Rushcutters Bay in Sydney, enabling it to feature elaborate sets.