The tale concerns an emperor who has an obsession with fancy new clothes, and spends lavishly on them, at the expense of state matters. One day, two con-men visit the emperor's capital. Posing as weavers, they offer to supply him with magnificent clothes that are invisible to those who are incompetent or stupid.

The gullible emperor hires them, and they set up looms and pretend to go to work. A succession of officials, starting with the emperor's wise and competent minister, and then ending with the emperor himself, visit them to check their progress. Each sees that the looms are empty but pretends otherwise to avoid being thought a fool.

Finally, the weavers report that the emperor's suit is finished. They mime dressing him and he sets off in a procession before the whole city. The townsfolk uncomfortably go along with the pretense, ...