Events

Europe

• Henry II of England acknowledges Rosamund Clifford as his mistress.
• The Revolt of 1173-1174 against Henry II of England ends in defeat for the rebels.
• William I of Scotland is captured by Ranulf de Glanvill at the Battle of Alnwick (1174), and Henry II of England occupies part of Scotland.
• Richard of Dover becomes Archbishop of Canterbury.
• William de Braose, Third Lord of Bramber becomes sheriff of Hereford.
• Fire destroys most of Padua, Italy.
• The city of Pombal, Portugal is founded by Gualdim Pais.
• The first known race track of the post-classical era opens at Newmarket in London.
• Battle of Thurles: Donal Mór Ó Brian defeats a Norman incursion into Thomond.

Middle East

• Saladin captures Damascus.
• Baldwin IV, 13, becomes King of Jerusalem, with Raymond III of Tripoli as regent and William of Tyre as chancellor.

Asia

• Vietnam is given the official name of Annam by China.

Central America

• The last Toltec king commits suicide.

Births

• Saint Hedwig of Andechs (d. 1243)
• King Peter II of Aragon (d. 1213)
• Emeric of Hungary (d. 1204)

Deaths

• May 15 — Nur ad-Din, ruler of Syria (b. 1118)
• June 28 — Andrei Bogolyubsky, Prince of Vladimir (b. c. 1111)
• July 11 — King Amalric I of Jerusalem (b. 1136)
• September 22 — Uchtred, Lord of Galloway (b. c. 1120)
• October 17 — Queen Petronila of Aragon (b. 1135)
• Everard des Barres, third Grand Master of the Knights Templar
• Miles of Plancy, French crusader