The King begins to make bad judgments: he "retires" from the worries of kingship, but expects to retain the privileges; he divides the kingdom, something every king knows better than to do; he banishes his only honest daughter and his most loyal advisor. Lest the reader not get the significance of these actions, they are mirrored in the actions of one of his royal party, Gloucester.

Nature announces impending trouble and the aging king reveals the magnitude of his dementia in a scene of violent delirium. The complex conspiracies among the sons and daughters of the king and Gloucester eventually lead to the violent deaths of most of the principles, clearing the way for an establishment of a new stewardship for the kingdom.