Sarah Ferguson Brown Nosed Princess Diana by Laughing Over Tragic Royal's Brutal Nickname for Male Palace Staff

OK! can reveal Sarah Ferguson is said to have sycophantically bonded with Diana, Princess of Wales, by laughing along with the late royal's biting nickname for senior palace officials.

Ferguson, 66, the ex-Duchess of York and former wife of the ex-Prince Andrew, developed a close friendship with Diana, who died at age 36 in a 1997 Paris car crash, after both women married into the royal family during the 1980s.

According to Paul Burrell, 67, who served as Diana's butler and later wrote about his experiences in Royal Insider, the pair often confided in each other about frustrations with palace officials who controlled their daily lives and schedules.

Ferguson and Diana, both young women thrust into the spotlight of royal life, were said to bond over their shared sense of being monitored by what they saw as an unyielding institutional structure.

Burrell described the atmosphere inside the palace in stark terms.

He wrote: "They would discuss the dour men in grey suits within the Royal Household, nicknamed 'The Enemy Within.'"

Sources familiar with the royal household dynamics of that period tell OK! Ferguson often reinforced Diana's views during private conversations.

One insider said the duchess appeared eager to align herself with Diana's frustrations toward palace bureaucracy.

They added: "Ferguson would often laugh along when Diana vented about the officials who managed their schedules and public duties. In those moments it was clear she wanted Diana to see her as a loyal ally who understood the pressures she was under."

The source added the shared complaints helped strengthen their friendship during their early years in the royal family.

They said: "Both women felt overwhelmed by the strict rules and by advisers they barely knew who were dictating how they should behave. Bonding over that resentment gave them a sense of solidarity, even if it sometimes meant mocking the very system they were part of."

Burrell also wrote Diana's longer experience inside the monarchy meant she often guided Ferguson on whom to trust.

He explained Diana, who had entered the royal family five years before Ferguson, had developed a keen understanding of palace politics.

However, the relationship between the two women eventually deteriorated. Burrell described the breakdown as "tragic" and linked it to the publication of Ferguson's 1996 autobiography My Story, which caused tensions within royal circles.

At the time Ferguson was struggling with mounting financial difficulties following her separation from the then-Prince Andrew. She secured a lucrative book deal with publisher Simon & Schuster reportedly worth up to $2 million.

Royal sources say Ferguson also encouraged Diana to write a book of her own.

Observers say Ferguson's financial troubles during the 1990s led her to rely increasingly on wealthy acquaintances – including Jeffrey Epstein – and commercial ventures.

In recent months, Ferguson has faced renewed scrutiny over historic links to convicted s-- offender Epstein after newly released documents included an email in which she thanked him for "being the brother I have always wished for."

She is now said to be desperately hunting for accommodation after she and her ex-husband, Andrew Mountbatten-Windsor, were booted out of the $4 0million Royal Lodge home they shared for decades after their divorce.

Both have had their royal titles stripped from them by King Charles over their links to Epstein, and Andrew has been released "under investigation" after being arrested on suspicion of misconduct in public office after allegedly sharing sensitive information with his pal Epstein during his role as a trade envoy for Britain.