Reluctantly Ludwig II. returns to Munich in the summer months of 1870. He shows himself on several occasions by the window after a large crowds of people gathered before the residence. His people are filled with enthusiasm and the cheers won't end. His subjects show great interest in the approaching events of war that results in a victory over France when Napoleon III. is captured during the battle of Sedan.

At the time the kingdom of Prussia is the mightiest and largest German State although it is of no superior rank. It is not to last, because Bismarck wants more. Prussia strives for the leadership of a German Federation, incorporating Bavaria. To accomplish this Bismarck has to move the Bavarian King to nominate the King of Prussia for the title of German Kaiser. Ludwig II knows what this will mean. After hundreds of years Bavaria would lose its independence.

Negotiations concerning the German unification begin in October of 1870 in Verseille. Verseille of all places! The victors over France had made the castle of Louis XIV., the Bavarian king's idol, their headquarters. Ludwig refuses to attend the negotiations in person. Count Holnstein, who enjoys special privileges with the king, finally convinces Ludwig II. to sign the "Kaiserbrief" {letter}, that had already been pre-written by Bismarck. With that the path is cleared for a German unification. On January 18 1871 Friedrich-Wilhelm, King of Prussia, is proclaimed German Kaiser in the Hall of Mirrors at Verseille.

Ludwig's brother Otto is present during the coronation and writes:

"Oh Ludwig, I can not describe to you how endlessly painful I felt during this ceremony. Everything was so cold, so proud, so glamorous, so splendid, so boastful and heartless and empty."

During the entry of the victorious Bavarian Army in 1871, the Prussian crown prince rides at the head of the troops through Munich's victory gate. Masses of people cheered for Ludwig's hated cousin. The Bavarian King reviews the troops by the monument of his grandfather. However, Ludwig does not appear for the military banquet in the Glass Palace. His Majesty's feelings are hurt too deeply. Ludwig's resentment of the Prussian crown prince and his bitterness over the past events increases in the years to come.

The German triumph of 1870/71 becomes the great downfall for the Bavarian King.