The Phoenix on the Sword" begins with a middle-aged Conan of Cimmeria attempting to govern the turbulent kingdom of Aquilonia.

Conan has recently seized the crown of Aquilonia from King Numedides after he strangled the tyrant upon his throne. However, his rule over Aqualonia is nonexistent, as Conan is more suited to swinging his broadsword than signing official documents with a stylus. The citizens of Aquilonia, who originally welcomed Conan as their liberator from Numedides' tyranny, have gradually turned against him due to his foreign Cimmerian blood. They have constructed a statue to Numedides' memory in the temple of Mitra, and priests burn incenses before their slain king, hailing it as the holy effigy of a saintly monarch who was done to death by a red-handed barbarian.

Desiring to give the Aquilonian crown to someone of royal blood, a daring band known as the Rebel Four is formed: Volmana, the dwarfish count of Karaban; Gromel, the giant commander of the Black Legion; Dion, the fat baron of Attalus; and Rinaldo, the hare-brained minstrel. The Rebel Four recruit the services of a southern outlaw named Ascalante. However, in secret, Ascalante plans on betraying his employers and claiming the crown for himself.