Neither side was entirely satisfied with the results of the war. Though Richard's victories had deprived the Muslims of important coastal territories and re-established a viable Frankish state in Palestine, many Christians in the Latin West felt disappointed that he had elected not to pursue the recapture of Jerusalem. Likewise, many in the Islamic world felt disturbed that Saladin had failed to drive the Christians out of Syria and Palestine. Trade flourished, however, throughout the Middle East and in port cities along the Mediterranean coastline.

Richard was arrested and imprisoned in December 1192 by Leopold V, Duke of Austria, who suspected Richard of murdering Leopold's cousin Conrad of Montferrat. In 1193, Saladin died of yellow fever. His heirs would quarrel over the succession and ultimately fragment his conquests.