At the end of 1135, Henry I, King of England, died suddenly without leaving a male heir to succeed him. Henry's daughter, Empress Matilda, believed that she should rule by succession. However, the late king's favourite nephew, Stephen of Blois ("the Blue"), was quicker to seize the throne and, with the help of his brother, the Bishop of Winchester, was crowned king.

The empress's followers were furious at Stephen's coronation and refused to accept him as the new ruler. For the next eighteen years, England was plagued by anarchy and civil war. This conflict is known as "Anarchy"...

In The Anarchy, the player who manages to accumulate the most bravery, loyalty, influence, and power - while avoiding discontent - will prove to King Stephen that he is his most loyal ally, thus gaining his largest county.