The story begins in London, England in the mid-16th century when a good and wise king ruled the country with peace and compassion.

Pete lectures the soldier for letting anyone in, pointing out where the real prince is: in class with his teacher Horace Horsecollar and his valet Donald Duck.

The prince later witnesses a couple of soldiers trying to steal a chicken from Clarabelle Cow and her two children, who explain that the soldiers have taken away their food and belongings ever since the king got ill, making the prince realize that Pete and his men have been slandering the king's name in order to satisfy their need for greed and power.

Upon being informed about the carriage incident by one of his guards, Pete realizes that he cast out the real prince by mistake and that the latter has seen the corruption going on outside.

Mickey enters the room of the dying king, who tells him he must take his royal birthright and become his new successor, unaware that who he's talking to isn't his son.

Fortunately, Goofy disguises himself as an executioner to help Donald and the prince escape the cell and run to the coronation chamber.

The real prince is crowned the new king, and he happily appoints Mickey (as a new member of the royal court) and Goofy (as the new captain of the guard) while ruling for many years with justice and compassion for all.