Margaret was born at Brussels[2] on January 10th, 1480, and baptized in Saint Gudule. Her godparents were Philippe de Ravenstein, Jean de Châlons, Prince of Orange, and Margaret of York, sister of Edward IV., King of England, third wife of Charles the Bold.

Margaret was the only daughter of the Archduke Maximilian, afterwards King of the Romans, and Emperor of Germany, by Mary of Burgundy, only daughter and heiress of Charles, Duke of Burgundy, surnamed the Bold.

When Margaret was barely two years old her mother died from the effects of a fall from a horse at the age of twenty-five, leaving two children, Philip (born 22nd July 1478) and Margaret. The Flemish States, discontented with Maximilian's rule, claimed their ancient right to educate his children, but in accordance with the terms of a treaty of peace signed at Arras between Louis XI. and the Archduke in the year 1483, Margaret was betrothed to the Dauphin Charles, afterwards Charles VIII., and was sent to France to be brought up and educated with the French princes. On the 2nd of June 1483, at the age of three, she made her entry into Paris amidst transports of joy, at the conclusion of the peace of which her presence was the pledge. 'And in honour of my said lady Margaret, who from henceforth was called Dauphine, the streets were decorated, and many people rejoiced.'[3] Louis XI. did not appear at these fêtes; he contented himself with secretly rejoicing over the successful issue of his cunning policy, an issue which would mean, as he foresaw, the downfall of the powerful house of Burgundy.

Margaret's dowry was a large one, consisting of Burgundy, the county of Artois, and the territories of Macon, Salins, Bar-sur-Seine, and Noyers. The ceremony of betrothal took place at Amboise with great pomp in presence of a numerous gathering assembled in the public square.

Charles, aged twelve, declared that he consented to take the three-year-old Margaret as his wife. The religious ceremony was performed the same day in the lower church of the castle, in presence of the lords and ladies of Beaujeu, of the Sire de la Trémouille, the Counts of Dunois, d'Albret, and many deputies from the provincial towns. The Dauphin, clothed in a robe of white damask lined with black velvet, married the little princess, and placed a ring upon her tiny finger. A mass was said, and a sermon preached by the Abbé of Saint Bertain, who compared this marriage to that of King Ahasuerus and Queen Esther; after which the Dauphin thanked all those who were present.

Two months later Louis XI. died (30th August 1483), leaving his kingdom to his son Charles, and appointing his favourite daughter, Anne de Beaujeu, as Regent. From the time of Louis' death Margaret was treated as queen, and given the honours due to her rank. Her childhood passed peacefully at Amboise, where she became the pet and plaything of her youthful husband, and of his cousin Louis, Duke of Orleans. It would be interesting to know the story of Margaret's life during the nine or ten years she was under the guardianship of Anne de Beaujeu. Charles's mother, the poor Queen Charlotte of Savoy, died soon after her eldest son's marriage, leaving the education of the young couple to the Regent Anne, whose vigorous intellect was not satisfied with ruling the kingdom of France for her brother. She read a great deal, early fathers, philosophers, moralists and poets, and selected romances for the young people under her charge. Her library contained three hundred and fourteen volumes, some of which are noted in the catalogue as being covered with red velvet, and ornamented with clasps, bosses, and corner pieces of metal.

If it is true that the first years of life, early education and precepts, influence the rest of existence, then Margaret must have had a very careful bringing up at the French Court, to judge from the marked talents, wisdom, and prudence she displayed in later years. Amongst her companions at the castle of Amboise we find Louise of Savoy, her senior by three years. Louise (the mother of Francis I.) was the daughter of the Sieur de Bresse and Margaret of Bourbon, and sister of Philibert II., Duke of Savoy, Margaret's future husband. Louise was a niece of Anne de Beaujeu's, and appears to have been treated as a poor relation, 'only receiving eighty francs at the New Year with which to buy herself a crimson satin dress for state occasions.' Anne's sickly little daughter, Susan, must also have been one of Margaret's younger playfellows.

The Lady of Beaujeu was devoted to hunting, and she hunted, we are told, 'coldly and methodically, with her own eyes examining the trail, and giving the word to hark forward, setting off with her hounds, and skilfully handling her hunting-spear. She probably encouraged this sport amongst her young companions, for we learn in after years that Margaret was a great huntress, and very proud of her stuffed wolves' heads.' Unhappily, no detailed account exists of Margaret's childhood in France, but from what we know of her life at Amboise she seems to have been a bright and lively child, with a marvellously fair complexion, golden hair and soft brown eyes, making many friends, with a gift for repartee and a strong sense of humour, which probably helped her to bear the many sorrows of her later life.

Years after, when Louis of Orleans was King of France, he refers in his letters to Margaret to their happy youth at Amboise when 'she was the second person he loved best in the world; that he desires above all things to embrace his cousin, his vassal, his first mistress, to remind her of their childish games, and after having made her blush by his compliments, to swear eternal love for her.'

In 1488 Francis II., Duke of Brittany, died, leaving only two daughters, Anne and Isabel. The latter did not long survive her father, but dying in August 1491 at the age of twelve, left her sister Anne sole possessor of the important duchy of Brittany. As early as 1480 Duke Francis had tried to arrange a marriage between his daughter Anne, or failing her, her younger sister Isabel, and the eldest son of Edward IV., King of England, but these plans were frustrated by the young prince's murder in the Tower of London.