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.

Genie, Aladdin and Jamillah pack to go on a picnic on the flying carpet but when they get on they discover Genie is suddenly afraid of heights. Can they help him overcome his fear?

An emissary from a far-off land comes to Baghdad with a sword trapped in a stone, claiming that only the next ruler of his home can pull it out. Everyone is shocked when Jamillah pulls it out, and is crowned as a princess. It's fun for a while, until the emissary tells her she'll have to leave Baghdad and her family behind. So Aladdin and Genie come up with a plan to help her escape her royal mess.