The basic premise revolves around a dispute between the Trade Federation and the peaceful planet of Naboo.
Sent to resolve the issue, Jedi Knights Qui-Gon Jinn and Obi-Wan Kenobi escape an attack by Trade Federation droids and land on Naboo.
Here Qui-Gon Jinn saves the life of Jar Jar Binks, a clumsy Gungan, one of the native races of Naboo. Binks leads them to the underwater city of the Gungans and their leader Boss Nass grants them transport to reach the human side of Naboo, via tunnels through the planet's core.
The Jedi rescue Queen Amidala, diplomatic leader of the Naboo, though their ship is damaged in the escape. They land on Tatooine to salvage spare parts.
There they meet Anakin Skywalker, a young slave, and his mother Shmii. Anakin offers to help Qui-Gon by racing in the local pod-race, and after a lengthy battle with fellow competitor Sebulba, wins the race. Because of the bet Qui-Gon placed with his owner Watto, Anakin not only wins enough money for the parts, but he also wins his freedom.
Travelling back to the ship, the Jedi have their first encounter with Darth Maul, a sinister Sith trainee, and follower of the Dark side. Nevertheless, they escape and travel to Coruscant to ask for aid against the blockade.
Whilst at Coruscant, Qui-Gon introduces Anakin to the Jedi Council claiming he is 'the one who will bring balance to the Force'. The Council test Anakin's powers, but declare that he is too old to be trained.
After aid against the blockade is denied, the Jedi travel back to Naboo with Queen Amidala and the aim of kidnapping the Viceroy of the Trade Federation.