The romance begins with the death of Hormuzd. Khusrau inherits a relatively stable empire, but he also struggles with the ongoing threat of insurrection by Bahram Chobin. He is eventually defeated by his rival, and Khusrau rides away from his kingdom into exile. As he travels alongside the painter Shahpur, his companion tells him stories of his travel to cheer him; Khusrau listens apathetically until Shahpur describes an Armenian painter who has created the portrait of a sweet woman (Shirin) on silk, that he has copied. Khusrau demands to see it and, upon gazing at her image, begs to know her identity. Shahpur informs him that this is Shirin, the niece of Queen Mihin Banu, and she is known for her wisdom, intelligence, bravery and beauty: qualities that make her worthy of a king. Inspired by this ringing endorsement, Khusrau rides towards Armenia, where he happens upon Shirin and her retinue on the hunting ground. The two are rendered speechless at their first meeting, and Shirin is thrilled to realize that this is the famous king Khusrau, with whom she is familiar by name and legend and has secretly longed to marry. She greets Khusrau humbly, kissing the ground in front of him and his stirrup; he in turn dismounts and kisses Shirin’s foot. Despite his insistence that he is en route to Byzantium, Shirin convinces him to accept her hospitality at the palace, and Khusrau is received with much respect by Mihin Banu.

A royal reception is prepared for the visitors and the wise men of the court. After an evening of wine drinking, Khusrau is offered a bedroom and five or six maidens for his pleasure, which he refuses. He is thinking only of his desire of Shirin, and she is in turn longing for him. The lovers declare their mutual affection and pass several days in revelry, but Shirin refuses to consummate the relationship. He confides in her about his trouble with Bahram Chobin and his intention to ask for assistance from the Byzantine emperor, and she offers the use of Shabdiz, the fastest horse in the kingdom. He promises to return for her hand once he has regained his throne, but when he reaches Rum, he is obligated to wed the emperor’s daughter, Maryam, in exchange for the support of the Byzantine army.