Although released before the series She-Ra: Princess of Power began, the film was a compilation of the first five episodes with minor edits made.

[6] It is part of the same continuity as the He-Man and the Masters of the Universe cartoon series, and was created by the same Filmation production team and cast.

Six months after its theatrical release, The Secret of the Sword was televised in episodic form, during the premiere week of the She-Ra TV series, from September 9 to 13, 1985.

While taking away villagers, the Horde, led by Captain Adora, are attacked by the Rebels, aided by Adam and Cringer in their secret identities as He-Man and Battle Cat.

Unable to defeat the combined might of the Eternian army and the magic of Grayskull, Hordak plotted to demoralize them by kidnapping the newborn royals.

The Sorceress could not discover which dimension Hordak fled to, so she cast a spell that wiped all memory of Adora from all Eternians except for herself, Man-At-Arms, Randor and Marlena.

Adora breaks Shadow Weaver's spell then follows the Sorceress's instructions to use the Sword's magic and transform into the superpowered She-Ra, Princess of Power.

After she revives He-Man, the pair destroy the Magna-Beam and flee on Adora's horse Spirit, who in She-Ra's presence is transformed into Swift Wind, a winged unicorn.

Meanwhile, Queen Angella, rightful ruler of the kingdom of Bright Moon, is being held prisoner on nearby Talon Mountain.

The Sorceress sends Adora and Spirit back to Etheria, saying that they can use the Sword to summon aid from Eternia should they ever need it.

He-Man and Battle Cat then return to Eternia, while She-Ra and Swift Wind resolve to stay until Etheria is free.

[citation needed] The film was released on DVD in the United States on a two-disc set titled "The Best of She-Ra: Princess of Power" collection on July 18, 2006 by BCI Entertainment’s Ink & Paint brand, which also included five episodes from the series.