- July 4 - Saladin defeats Guy of Lusignan, King of Jerusalem, at the Battle of Hattin.
- October 2 - Saladin captures Jerusalem.
- Town of Byblos in Lebanon is taken by Saladin.
- Alexis Branas attempts to seize Constantinople in defiance of his master Isaac II Angelus.
- July 4 - Raynald of Chatillon is executed by Saladin after the Battle of Hattin.
- Alexis Branas, Byzantine general
- Count Raymond III of Tripoli