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An insecure emperor who cares only about fine clothing hires two swindlers who promise to weave him a magnificent suit. The tricksters claim that this special fabric is completely invisible to anyone who is either stupid or unfit for their social office. Afraid of being judged, the emperor's ministers and the emperor himself pretend to see the non-existent cloth. The monarch then proudly parades through the city completely naked under a royal canopy. The townspeople also play along until a small child in the crowd finally shouts out the truth: "But he hasn't got anything on!" The crowd begins to laugh, and though the proud emperor realizes they are right, he holds his head high and continues the procession anyway.