In the 12th century, Arn Magnusson, a young man from a powerful Swedish noble family, is educated in a monastery and trained as a Knight Templar. After he kills two men who try to force a young girl into marriage, he returns to his family and becomes embroiled in a struggle between powerful families fighting for the crown of Västra Götaland. Arn and his fiancée Cecilia are excommunicated and forced to undertake twenty years of penance: Cecilia in a convent and Arn as a Knight Templar in the Holy Land. While fighting against the Saracens, Arn saves the life of Saladin and is successful in ambushing his army. The movie ends with Arn being discharged from his service and Cecilia praising God for Arn's survival.

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Arn: The Knight Templar was released in theaters on December 25, 2007.