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First thing you need to know about this great movie is, there is no Princess Mononoke. The word Mononoke in Japanese roughly translates to supernatural being, such as a spirit or shape-shifter. It is written and directed by the great Hayao Miyazaki.
In ancient Japan, during the late feudal era, a demon attacks the town of Emishi. The last prince, Ashitaka, defeats the demon, but not without cost. His right arm was hit in the battle and becomes corrupted. This corruption makes him very strong but will eventually spread to his whole body and kill him. The village wise women tells him there is a cure to the west, so he goes off in search of it.
On his journey west, Ashitaka discovers that a forest spirit is the only thing that can sure him. A monk tells him where he can find the spirit. Upon his arrival there he finds that the forest spirits are at war with a nearby mining town of humans. Ashitaka gets drawn into the middle of this battle and must stop the war if he is to get help from the forest spirit.
San, a human girl, was raised by the creatures and spirits of the forest. She has no ties humans and is angered by the mining town destroying her home. She helps the spirits and creatures of the forest in their war to stop the mining town from destroying the forests. This is the person that would come closest to being Princess Mononoke.
San meets up with Ashitaka and together they try to stop the war and save the forest. There is a lot of plots, sub-plots, and deception going on for both sides of the battle and the pair have a difficult time trying to end the war.