The Sultan's long lost brother, Jafar, returns to Baghdad and the Sultan immediately announces that he will be giving the throne to him. Jamillah is suspicious, she doesn't believe that Jafar is who he says he is and neither, as it turns out, does the Vizier. Together they work to discover who Jafar really is before it's too late.

After a terrible dream, the Sultan becomes convinced that his daughter is in danger, so he decides to send her away from Baghdad forever. The Princess comes to Jamilah and Aladdin asking for their help and together with Genie they hatch a scheme to convince the Sultan that she is safe and that she should stay.

Aladdin and Jamillah argue over who is the smartest, so Genie designs a competition to answer it once and for all by hiding a compass in the middle of a desert and setting them both the task of finding it. They fly out to the desert on the magic carpet but then discover that the carpet has stranded them there. Now they'll have to use their wits if they want to get back to Baghdad.