The Jedi, Qui-Gon Jinn and Obi-Wan Kenobi, are on a mission for the Galactic Republic to negotiate a peaceful settlement between the Trade Federation and the planet of Naboo. Upon arriving, they discover that the Trade Federation has invaded Naboo with their droid army, forcing the two Jedi to flee with Naboo's Queen Amidala and her loyal servants.
During their escape, the group's starship is damaged, and they are forced to land on Tatooine to seek repairs. It is here that Qui-Gon Jinn discovers Anakin Skywalker, a young boy who demonstrates an impressive connection to the Force. After winning a podrace competition, Anakin joins the group as they continue their journey to seek help from the Galactic Senate.
However, the group is pursued by Darth Sidious, a Sith Lord, and his apprentice, Darth Maul. The Sith plot to take revenge against the Jedi for defeating them in the past and regain control of the galaxy. Along the way, the group encounters various obstacles and enemies, including bounty hunter Jango Fett and Senator Palpatine, who would later become the Emperor.
Eventually, the group reaches the Galactic Senate, where they hope to find assistance in defeating the Trade Federation and the Sith. With the help of the Senate and the Gungan army, they are able to successfully defeat the Trade Federation and its droid army, while Qui-Gon Jinn battles and is killed by Darth Maul.
In the film's climactic final sequence, Anakin Skywalker destroys the control ship of the Trade Federation's droid army, leading to their ultimate defeat. Anakin is freed from slavery and begins his training as a Jedi, while the Jedi Council remains wary of the growing threat of the Sith and their manipulations of the galaxy's political landscape.