The Federation has invaded Theed, capturing Queen Padmé Amidala. However, the Jedi rescue her, and she decides to flee to Coruscant (the Republic capital) to plead for help in the Senate. During their escape, a Federation battleship damages their hyperdrive. The crippled royal starship limps to the Outer Rim desert planet: Tatooine.
On Tatooine, Qui-Gon, Jar Jar, and the handmaiden Padmé (disguised as a handmaiden while the queen is in decoy armor) seek spare parts from the junk dealer Watto. Qui-Gon senses a powerful Force presence in a young slave boy: Anakin Skywalker. Anakin is a nine-year-old genius who built his own protocol droid, C-3PO, and is an incredible podracer pilot.
Qui-Gon believes Anakin is the "Chosen One"—prophesied to bring balance to the Force. He makes a bet with Watto: Anakin will race his pod in the dangerous Boonta Eve Classic. If Anakin wins, Watto frees him; if he loses, Qui-Gon gives up his starship. Meanwhile, Padmé bonds with Anakin, who is kind, generous, and deeply misses his mother, Shmi. Star Wars- Episode I - The Phantom Menace
Opening Crawl: Turmoil has engulfed the Galactic Republic. The taxation of trade routes to outlying star systems is in dispute.
On Coruscant, Qui-Gon reports to the Jedi Council (led by Yoda and Mace Windu) that a Sith Lord—believed extinct for a millennium—has reappeared. He asks to train Anakin. The Council is troubled: Anakin is too old, too fearful, and attached to his mother. Yoda senses "much fear" in the boy. They refuse to train him but allow Qui-Gon to keep Anakin close. The Federation has invaded Theed, capturing Queen Padmé
The Trade Federation, under the secret leadership of the mysterious Darth Sidious, has blockaded the peaceful planet of Naboo with a massive droid army. Supreme Chancellor Valorum dispatches two Jedi Knights—Master Qui-Gon Jinn and his Padawan, Obi-Wan Kenobi—to negotiate a settlement.
Upon landing, Qui-Gon saves a bumbling, clumsy, but well-meaning Gungan outcast named Jar Jar Binks from a transport vehicle. Jar Jar, indebted by Gungan life-debt, leads the Jedi to the underwater Gungan city of Otoh Gunga. There, Qui-Gon tries to persuade Boss Nass to help the Naboo, but the Gungans refuse, distrusting the surface dwellers. The Jedi depart in a bongo submarine, traveling through the planet's core to the capital city, Theed. The crippled royal starship limps to the Outer
Anakin enters the race, which features six laps of deadly canyons, Tusken Raiders shooting at racers, and rival pilots. Against all odds, he wins, destroying Sebulba’s pod in the process. Watto gives him the prize—but then, Darth Sidious’s apprentice, the horned, red-skinned Zabrak Sith Lord , appears on Tatooine, hunting the Jedi.
Onboard the Federation flagship, the Neimoidian Viceroy Nute Gunray receives a holographic transmission from Sidious: "Kill them immediately." The Viceroy tries to gas the Jedi, but they escape and fight through droid forces. They commandeer a landing craft and flee to the swampy planet Naboo.