Holy Roman Emperor Frederick I `Barbarossa' was to be one of the leaders of the third Crusade departing for the Middle East. Barbarossa died enroute in Cilicia, and his son Frederick, Duke of Swabia took control of the German army and continued marching to the Acre battlefield. Frederick died at Acre, shortly before the arrival of Duke Leopold, who then became commander of the German forces.

Legend tells when new Emperor Henry VI met with Duke Leopold, the Duke wore a bloody tunic from the warfare. A belt removed from the tunic exposed a white stripe on the garment. Henry VI granted the Duke the privilege of adopting the red, white, red colors of his tunic as his banner. this would become the flag of Austria.

After months fighting at Acre, the Duke witnessed the arrival of first Philip II of France and his forces, and then Richard I of England with his, contributing to victory. the victorious leaders raised their banners over the fallen city. However, Richard I spotted Duke Leopold's banner, removed it, then was rude and dismissive to Leopold, refusing to restore the banner. Duke Leopold, vowing revenge, departed for Austria with most of his army.

Richard's journey homeroom the third Crusade experienced shipwreck in the Adriatic and he decided to cross the Holy Roman empire incognito, knowing he would not receive favorable treatment. recognized in Vienna, richard was imprisoned by Duke Leopold who demanded a huge ransom. The ransom became the foundation of Vienna's mint.

Only 37 years old, Leopold V died in 1194 in Styria of gangrene after an improper foot amputation.