Hugh O'Neill had been educated in England and had a better understanding of the English, their mentality, politics and methods than any of his contemporaries. For a number of years he acted ostensibly as part of the English administration, taking their title of Earl of Tyrone in 1585. At the same time he was building up a series of alliances with the major Gaelic families of Ulster. Through marriage he brought together the O'Neills and the O'Donnells of Donegal who had been rivals for centuries.

By 1595 Hugh O'Neill had dropped all pretence and made it clear where his loyalties lay. He attacked and captured the Blackwater Fort and defeated Sir John Norris at Clontibret. He arranged the escape of Red Hugh O'Donnell whom Elizabeth had imprisoned in Dublin Castle, and together they defeated Sir Henry Bagenal at the Battle of the Yellow Ford near Armagh in 1598. O'Donnell then went to rally the Irish in Connacht while O'Neill worked through the midlands and concentrated on Munster.