Aladdin is an impoverished young ne'er-do-well in a Chinese city, who is recruited by a sorcerer from the Maghreb, who passes himself off as the brother of Aladdin's late father, convincing Aladdin and his mother of his goodwill by apparently making arrangements to set up the lad as a wealthy merchant. The sorcerer's real motive is to persuade young Aladdin to retrieve a wonderful oil lamp from a booby-trapped magic cave. After the sorcerer attempts to double-cross him, Aladdin finds himself trapped in the cave. Fortunately, Aladdin retains a magic ring lent to him by the sorcerer. When he rubs his hands in despair, he inadvertently rubs the ring, and a jinni, or "genie", appears, who takes him home to his mother. Aladdin is still carrying the lamp, and when his mother tries to clean it, a second, far more powerful jinni appears, who is bound to do the bidding of the person holding the lamp. With the aid of the jinni of the lamp, Aladdin becomes rich and powerful and marries Princess Badroulbadour, the Emperor's daughter. The jinni builds Aladdin a wonderful palace – far more magnificent than that of the Emperor himself.
The sorcerer returns and is able to get his hands on the lamp by tricking Aladdin's wife, who is unaware of the lamp's importance, by offering to exchange "new lamps for old". He orders the jinni of the lamp to take the palace to his home in the Maghreb. Fortunately, Aladdin retains the magic ring and is able to summon the lesser jinni. Although the jinni of the ring cannot directly undo any of the magic of the jinni of the lamp, he is able to transport Aladdin to Maghreb, and help him recover his wife and the lamp and defeat the sorcerer.
The sorcerer's more powerful and evil brother tries to destroy Aladdin for killing his brother by disguising himself as an old woman known for her healing powers. Badroulbadour falls for his disguise, and commands the "woman" to stay in her palace in case of any illnesses. Aladdin is warned of his danger by the jinni of the lamp and slays the imposter. Everyone lives happily ever after, Aladdin eventually succeeding to his father-in-law's throne.