The main characters are the Scottish knight Kenneth, a fictional version of David of Scotland, Earl of Huntingdon, who returned from the third Crusade in 1190; Richard the Lionheart; Saladin; and Edith Plantagenet, a relative of Richard.
In Scott's own words: ". . . the warlike character of Richard I, wild and generous, a pattern of chivalry, with all its extravagant virtues and its no less absurd errors, was opposed to that of Saladin, in which the Christian and English monarch showed all the cruelty and violence of an Eastern sultan, and Saladin, on the other hand, displayed the deep policy and prudence of a European sovereign, whilst each contended which should excel the other in the knightly qualities of bravery and generosity. This singular contrast afforded, as the author conceived, materials for a work of fiction possessing peculiar interest."