Prophet Muhammad saw a dream of the Muslims entering the Ka'bah to worship, and he instructs his followers to begin preparations to go to Mecca. They would go in peace, without arms.
The call to go for this pilgrimage turns into an opportunity to expose more of the Munafiqeen as they make excuses to avoid the seemingly dangerous journey.
When the Quraysh get word of the Muslims arriving, they panic, fearing that allowing their enemies into the city would make the Meccans appear weak. While they negotiate with the Muslims, the friendly local tribe of Khuza'ah helps the Muslims settle in Hudaybiyyah and even advocates for them to teh Quraysh, reminding them of their oath to allow all pilgrims to the holy Kaba

Lecture notes available at http://www.why-quran.org/?p=608.

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