Princess Diana shocked the Royal Family and the world when she took part in her candid Panorama interview. But according to reports, Princess Margaret saw Diana's interview as a "betrayal," and she urged other Royal Family members to cut off the former Princess of Wales.
In the 2021 book Elizabeth & Margaret: Inside the Intimate World of the Windsor Sisters, Andrew Morton wrote (via the Daily Mail), "Margaret experienced a deep sense of hurt and betrayal as she watched Diana's historic interview." As a result, she reportedly cut ties with Diana altogether. "Not only did she cut off all contact with the princess, she also made it clear to her children that she did not want them fraternizing with the enemy," Morton explained.
Princess Margaret's decision reportedly heavily affected her daughter, Lady Sarah Chatto. Sarah was allegedly very close with Princess Diana, but they were no longer connected after the Panorama interview aired, per Morton.
Morton also wrote about Margaret and Diana's relationship in his book, Diana: Her True Story—In Her Own Words. According to the biographer, Diana told him, "I've always adored Margo. I love her to bits and she has been wonderful to me from day one." Sadly, that apparently wasn't the case after Princess Diana's interview aired on the BBC.
Princess Diana was reportedly "pleased" with how her Panorama interview turned out. However, in the years since the interview aired, the episode has been thoroughly investigated. An inquiry ruled that Bashir had used deceitful methods to obtain access to the former Princess of Wales, and had lied to her brother, Charles Spencer.
One of Diana's friends, journalist Richard Kay, has also suggested that the princess knew her unforgettable interview would be the end of her relationship with the Royal Family. "We all know Diana was tricked or fed things, but I learned something quite interesting recently and it came from [Diana's ex-boyfriend] Hasnat Khan, and he told me that she knew what she was doing," Kay said, according to The Independent. "She said, 'I know how the royals react to this. I know what they'll do,' and she said, 'They'll now want me to divorce.'"