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Aladdin, a kind-hearted street urchin living in the Arabian city of Agrabah along
with his pet monkey Abu, rescues and befriends Princess Jasmine, who has snuck out of
the palace to explore, tired of her sheltered life. Meanwhile, the grand vizier, Jafar,
schemes to overthrow Jasmine's father as the Sultan. He, along with his pet parrot
sidekick Iago, seeks a magic lamp hidden in the Cave of Wonders that will grant him
three wishes. He has been unable to retrieve the lamp himself because only “the diamond
in the rough“ is allowed to enter the cave; anyone else will be devoured and killed by the
cave itself.
Jafar discovers Aladdin is the diamond in the rough and when Aladdin sneaks
back into the royal palace to talk to Jasmine, he is captured and persuaded by Jafar's deal
to help him retrieve the lamp: since only Aladdin can enter the cave alive, he will retrieve
the lamp for Jafar and Jafar will make Aladdin rich enough to impress Jasmine. Jafar
warns Aladdin not to take anything but the lamp, even though he will be very tempted to.
Inside the cave, Aladdin finds a magic carpet and obtains the lamp. Abu accidentally
causes the cave to collapse after he picks up a ruby, as the cave thinks he is stealing. He
gives it to Jafar as he hangs perilously from the exit of the cave in exchange for his help
up. Jafar double crosses him however, and throws him and Abu back into the cave,
though Abu steals the lamp back. The magic carpet also catches Aladdin and saves him
from falling to his death.
Iago snatches one of the guards’ keys and he frees Jafar. Jafar stealthily steals the lamp
from Aladdin and becomes Genie's new master. He uses his first two wishes to become
Sultan and then, when the guards refuse to acknowledge the change at Jasmine's request,
to become the world's most powerful sorcerer, imprisoning the guards and Jasmine's pet
tiger Rajah. He then exposes Aladdin's identity to Jasmine and exiles him and Abu to a
frozen wasteland on the other side of the Earth. He threatens to kill the Sultan and Dalia
unless Jasmine agrees to marry him. At the wedding ceremony, Aladdin and Abu return,
having been rescued by the magic carpet and Jasmine steals back the lamp. Furious, Jafar
transforms Iago into a roc to give chase. Iago overpowers them and steals the lamp back,
destroying the magic carpet in the process.
Aladdin stalls by taunting Jafar for being second and less powerful than the Genie,
thereby tricking him into using his last wish to become the most powerful being in the
universe. Due to the vagueness of the wish, Genie is able to use it to turn Jafar into a
genie; chained to the lamp without a master, Jafar gets trapped inside, dragging Iago
inside with him. Genie throws Jafar's lamp to the Cave of Wonders and repairs the magic
carpet. Aladdin keeps his promise, using his last wish to free Genie and allow him to live
as a human. The Sultan declares that Jasmine will be the next ruler and tells her that
Aladdin is a good person, outlines how worthy he is and tells her as Sultan, she can
overturn the law that requires her to marry a prince. Jasmine follows Aladdin to the
outside of the palace where she "orders him" to come and face the Sultan and return what
he stole, which is a part of her hairpiece. She and Aladdin then share a passionate kiss.
Genie marries Dalia and leaves to explore the world and start a family with her. Aladdin
and Jasmine get married and start a new life as well.