A galactic trade dispute sends Jedi knights Qui-Gon Jinn (LIAM NEESON) and his apprentice, Obi-Wan Kenobi (EWAN MCGREGOR) as ambassadors on a diplomatic mission, but they discover that they've been set up by Darth Sidious (IAN McDIARMID), who's plotting to take control of the republic. Barely escaping with their lives, they arrive at the planet of Naboo and find its young ruler, Queen Amidala (NATALIE PORTMAN), upset about the Trade Federation's strong- arm tactics -- now embodied as a planetary blockade and an android invasion -- to force her to sign an unfair treaty with them.
As they set out to rescue the Queen, the Jedi also meet and save the life of a Gungan, Jar Jar Binks (voice of AHMED BEST), an odd amphibian-like creature who's an outcast from his subterranean world. Upon their successful recovery of the Queen, their small party sets out for the Imperial city of Coruscant. Their ship, however, is damaged during a brief battle, and despite being partially fixed by a little 'droid, R2D2 (KENNY BAKER), they're forced to land on the desert planet of Tatooine (the future home of Luke Skywalker as fans of the series are long aware).
There they try to get spare parts for their ship, but are forced to enter into a racing wager with their hopes and future riding on the success of a young boy, Anakin Skywalker (JAKE LLOYD), who, along with his mother, Shmi (PERNILLA AUGUST), is a slave to a local barterer.
Qui-Gon senses a powerful force in Anakin, who's been building a partially completed 'droid he's named C3PO (ANTHONY DANIELS), and once their ship is repaired, they set off again for Coruscant, but not before an encounter with Darth Maul (RAY PARK, voice of PETER SERAFINOWICZ), who's been sent by the ever-hooded Darth Sidious to stop them.
Finally arriving in the Imperial City, Queen Amidala pleads her case before the Senate while Qui- Gon does the same before the Jedi council about him teaching Anakin to become a Jedi. Other knights, however, including Yoda (voice of FRANK OZ) and Mace Windu (SAMUEL L. JACKSON), however, aren't so sure of Qui-Gon's confidence and sense something unsettling about Anakin's future.
From that point on, the two Jedi, Queen Amidala and their companions return to Naboo where they plan to battle the Trade Federation and their army of 'droid warriors.