Europe

• Summer – Emperor Otto II (the Red) assembles an imperial expeditionary force at Taranto, and proceeds along the gulf coast towards Calabria. In the meantime, Emir Abu'l-Qasim (Kalbid) of the Emirate of Sicily declares a Holy War (jihad) against the Germans, but his forces retreat when he notices the unexpected strength of Otto's troops (not far from Rossano).
• July 13 (or 14) – Battle of Stilo: Abu'l-Qasim is cornered by the imperial German forces led by Otto II at Cape Colonna (south of Crotone). After a violent clash, the German heavy cavalry destroys the Muslim centre, killing al-Qasim in the initial fighting. The Saracens hold together and draw Otto into a trap, encircling and defeating his forces (killing around 4,000 men).^[1]
• King Harald Bluetooth invades Norway, pillaging southwest Norway all the way to Stad, where he encounters Haakon Sigurdsson (the de facto ruler of Norway) and his army. He flees back to Denmark, ending the invasion.

Asia

• 'Adud al-Dawla, emir (king of kings) of the Buyid Dynasty, concludes a 10-year peace treaty with the Byzantine Empire. He establishes what will soon become the most important hospital of Baghdad.^[2]
• The Indian Rashtrakuta Dynasty ends as its last ruler Indra IV commits Sallekhana (the Jain religious practice of voluntarily starving oneself to death).

• October 13 – Chinese Emperor Jingzong dies in camp during a hunting trip after a 13-year reign. He is succeeded by his 11-year-old son, Shengzong, as ruler of the Khitan-led Liao Dynasty. His mother, Empress Dowager Xiao Yanyan becomes the regent.^[3]

Exploration

• Erik the Red establishes the first Viking colonies in Greenland (see 981).

Religion

• Adalbert becomes bishop of Prague after the death of Dětmar (or Dietmar).