In modern-day London, an older man emerges from his apartment and goes to his car. Three punks approach him and ask if he’s going on a trip. When he admits he is, they insist he goes with them instead. The man subdues one of them and the second draws a knife. His friend Tom tries to stop him but the punk continues and the older man takes the knife-wielding hood down as easily. The older man grabs Tom who explains they were under orders to bring him to a woman. The older man insists on going to see the woman.
In a fortune-telling shop, the older man confronts the woman, who refers to him as Lance. She sends Tom outside and Lance leans forward and turns on the light, revealing the woman’s face. He knows her as Morgan Le Fay, and she addresses him as Lancelot. Lancelot says that he was the last but discovered that he gained somehow immortality and fought as a mercenary down through the centuries. He believes that his immortality is a curse and punishment for his affair with Guinevere. Morgan uses a crystal ball and shows him Merlin, sleeping. Morgan explains that Merlin was summoning Lance to Cornwall where he lies buried, and that Merlin placed the spell that kept Lancelot alive so there would be a familiar face and a strong arm to greet him when he awoke. Morgan explains that Merlin is dangerous but Lancelot insists on going to his friend. As he leaves, he tells Morgan he’s taking Tom with him. Morgan calls Tom in, gives him two flashlights, and then teleports the two of them to the cave in Cornwall.
Lancelot tells to stay behind and enters the cave. He passes an empty suit of armor and enters the large cave where Merlin is slowly waking up. He directs Lancelot to a glowing vial and directs the knight to pour some in his mouth. Merlin asks what the world is like and Lancelot admits that the world is still divided between good and evil. Merlin informs him that this time they won’t leave their task unfinished. He plans to set a new Arthur on the throne but Lancelot warns that the world has moved on and that weaponry has become more dangerous and leaves no room for mistakes. Lancelot tells him that he and the others paid the price while Merlin slept through the end. Merlin summons the empty suit of armor, the Crimson Knight. Tom sees the magical energies and runs into the cave.
Merlin is pleased that Lancelot has told him he would oppose his efforts. The wizard explains that the hollow knight was his guardian during the time he spent sleeping. Tom comes in and Lancelot identifies him as his squire. Merlin forces Tom to accompany them as they walk outside to a stone circle, the “true” Stonehenge. Lancelot begins to grow older and, getting cold, goes back into the cave to get his scarf. Inside he takes a sip of the liquid that he gave to Merlin to help restore him.
Lancelot returns outside and Merlin explains they are between the worlds in a place of great power. He tells Lancelot that he placed a compulsion on Lancelot to bring someone with him and there needs to be a sacrifice to restore his powers to full level. Lancelot insists he can defeat the hollow knight but Merlin explains that he’s withdrawn his immortality spell. The knight grabs Tom and Lancelot tells Merlin to release the boy. Merlin considers letting him try but Morgan arrives and challenges Merlin. Merlin commands the knight to fight Lancelot and provides the knight with weapons and armor. Tom helps him don his gear and Merlin notes that Lancelot moves easily. Lancelot removes his helm to show his youthful visage and explains that he drank the elixir.
Lancelot battles the hollow knight while Morgan, Tom, and Merlin look on. The knight finally cuts off first the hollow knight’s armor and then its head. As it fights, Morgan realizes that Merlin is controlling the knight. She engages in a battle of magical energy with the ancient wizard but is soon brought down. Meanwhile, the hollow knight knocks Lancelot to the ground. He delivers one final blow, bringing it down and causing it to fade away.
Merlin insists his warrior’s defeat changes nothing. Lancelot walks toward him, his shield proof against Merlin’s magic. The knight destroys Merlin’s staff but tells him that his killing days are done. Merlin ages into death and wishes Lancelot one final goodbye before collapsing into dust.
Lancelot and Tom go to Morgan, who lies dying. She tells them that the right path will take them back to London. She asks Lancelot to hold her one final time and then dies in his arms. Knight and squire take the path but Lancelot considers the left-hand path, which leads to a realm of fantasy and light with a great castle in the distance.. Lancelot takes the left-hand path and after a moment’s hesitation, Tom follows.
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