Just before the HMS Dauntless happens upon the wreck of a merchant vessel, Elizabeth spots a lone survivor, young Will Turner, lying unconscious on a piece of driftwood.

Elizabeth discovers a gold pirate medallion around his neck. Believing the boy to be a pirate, and fearing that Lieutenant Norrington will have him hanged, Elizabeth pockets the medallion before Will is taken below deck.

He presents Elizabeth with a dress from London, hoping she will wear it to Captain Norrington's promotion ceremony. She agrees to wear it, though she finds the corset highly uncomfortable.

The governor has commissioned a sword from Will, which he intends as a gift for the soon-to-be Commodore Norrington.

Emboldened by his promotion, Commodore Norrington proposes to Elizabeth, who promptly faints due to the tightness of her corset and falls into the ocean.

Captain Jack Sparrow, having just arrived in Port Royal to commandeer a ship, rescues Elizabeth. Jack's interest is piqued by her medallion, but his questions are forestalled by Norrington, who arrives with marines to arrest him, having recognized a brand on his forearm as the mark used by the East India Trading Company to identify pirates.

Jack holds Elizabeth hostage long enough to have his effects returned and make a swashbuckling escape, but he finds himself face to face with Will Turner who fights him to a standstill. It is Will's employer, however, the blacksmith John Brown, who knocks Jack unconscious after sleeping through the entire swordfight.

Port Royal is besieged by the infamous ghost ship known as the Black Pearl--a black vessel crewed by a vicious, bloodthirsty crew, and captained by a man reputed to be "so evil that Hell itself spat him back out".

The crew of the Black Pearl is searching for Elizabeth's gold medallion, which is one of 882 gold pieces that they took from the treasure of Hernán Cortés on Isla de Muerta, all of which must be returned if they wish to lift the curse that has been placed upon them.

She invokes the rule of parley, which dictates that no harm may come to her until she is taken to the ship's captain to negotiate.