Despite his lucky escape in 1482, when he easily could have been murdered or executed in an attempt to bring his son to the throne, during the
1480s James did not reform his behaviour. Obsessive attempts to secure alliance with England continued, although they made little sense given the prevailing politics. He continued to favour a group of 'familiars', unpopular with the more powerful magnates. He refused to travel for the implementation of justice, and remained invariably resident in Edinburgh. He was also estranged from his wife,
Margaret of Denmark, who lived in
Stirling, and increasingly his eldest son. Instead he favoured his second son.
Matters came to a head in
1488 when he faced an army raised by the disaffected nobles, and many former councillors at the
Battle of Sauchieburn, and was defeated and killed. His heir, the future
James IV of Scotland, took arms against his father, provoked by the favouritism given to his younger brother.
Persistent legends, based on the highly coloured and unreliable accounts of sixteenth century chroniclers such as
Robert Lindsay of Pitscottie, John Leslie and
George Buchanan, claim that James III was assassinated at
Milltown, near
Bannockburn, soon after the battle. There is no contemporary evidence to support this account, nor the allegation that he fled the battle, nor the tale that his assassin impersonated a priest in order to approach James.
A story is told that, on the eve of the Battle of Sauchieburn, Sir David Lindsay, son of Sir John, Lord Lindsay of the Byres, presented James III with a "great grey horse" that would carry him faster than any other horse into or away from the battle. Unfortunately, the horse threw the King during the battle, and James III was either killed in the fall, or was finished off by enemy soldiers.
Whatever his other faults, James does not seem to have been a coward nor (as Pitscottie claimed) did he avoid conflict or 'manly pursuits'. He actively pursued military conflict in 1482 and 1488 with disastrous results, and frequently proposed unrealistic schemes to take armies to the continent. It is most likely that he was killed in the heat of battle. James is buried at
Cambuskenneth Abbey.