Battle of Hattin
Saladin defeats the crusaders and takes Jerusalem

Sultan Saladin destroyed the army of the Kingdom of Jerusalem at the Horns of Hattin and then took Jerusalem itself. Its loss provoked the Third Crusade, which failed to recover the city.
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Meanwhile around the world (±25 years)
Europe
- 1163–1345 Notre-Dame de Paris begun — 24 years earlier
- 1202 Fibonacci's Liber Abaci — 15 years later
- 1204 Sack of Constantinople — 17 years later
Eastern Europe & Russia
- 1185 Prince Igor's campaign — 2 years earlier
Asia
- 1192–1333 First shogunate in Japan — 5 years later
- 1206 Temüjin proclaimed Genghis Khan — 19 years later
- 1206 Founding of the Delhi Sultanate — 19 years later
Alive at the time
- Saladin (aged 50)
- Genghis Khan (aged 25)
- Averroes (Ibn Rushd) (aged 61)
- Henry II (aged 54)
- Minamoto no Yoritomo (aged 40)
- Vsevolod the Big Nest (aged 33)
- Richard the Lionheart (aged 30)
- Philip II Augustus (aged 22)
- John Lackland (aged 21)
- Francis of Assisi (aged 5)