Events

• November 25 - Baldwin IV of Jerusalem and Raynald of Chatillon defeat Saladin at the Battle of Montgisard.
• Manuel I Comnenus recaptures some of the former Byzantine territory lost at the Battle of Myriokephalon the previous year.
• Benedictus Abbas becomes abbot of Peterborough.
• Byland Abbey is founded in Yorkshire by the Cistercians.
• Casimir II becomes duke of Poland.
• The Cham destroy Angkor Wat.
• Sibylla of Jerusalem marries William of Montferrat.
• Roger de Moulins becomes Grand Master of the Knights Hospitaller.
• Moscow is burned down and its inhabitants are killed.
• Puigcerdà is founded by Alfonso I of Aragon.
• Leopold V becomes Duke of Austria.
• February 13 - Joan Plantagenet marries William II of Sicily.
• September 27 - Pope Alexander III sends a letter to Prester John, believing he is real.

Births

• Baldwin V, king of Jerusalem
• John of Ibelin, lord of Beirut
• Philip of Swabia, rival of Otto IV, Holy Roman Emperor

Deaths

• William of Montferrat, father of Baldwin V of Jerusalem
• Hugh Bigod, 1st Earl of Norfolk
• Henry Jasomirgott, Duke of Austria, on January 13.

Heads of states

• England - Henry II Curt Mantle, King of England (reigned 1154 - 1189).
• France - Louis VII, King of France (reigned 1137 - 1180).

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