The King of Yemen throws a grand ceremony on the occasion of his second marriage. The fakir Pirmard comes to visit the King and delivers ill portents. He warns the King against the dangers that will befall him because of his marriage. Disbelieving him, the King has the fakir punished and sent away.
Ten years later, the fakir’s warnings seem to be coming true. The conniving Queen wants her stepson Parwiz removed so that her own son Nadir can ascend the throne. For this she has her accomplice Fawriz frame Parwiz of rape. Parwiz is imprisoned. Not satisfied with this she tries to have him poisoned by Fawriz as well. Her plans are overheard by Parwiz’s sister who runs into the old fakir Pirmard and asks for his assistance. Fawriz is unable to go through with the plan and confesses everything to the prince. An infuriated Queen murders Fawriz and is about to kill Parwiz as well, when the fakir intervenes. Parwiz escapes and is later given a magical dagger by the fakir.
Once outside the grasp of the Queen, Parwiz journeys to a magical land ruled by an evil genie. He is assaulted by an ape-man whom he manages to vanquish with the help of the dagger. He learns that the Egyptian Princess Parizad has been imprisoned by the genie on the orders of a tyrant Badshah. The Princess is terrified of the genie and begs Parwiz to flee. But Parwiz refuses to leave without helping her. When the fearsome genie learns of his presence in his palace, they get into a fight. But while they are busy fighting, Parizad manages to pluck the flower that contained the genie’s power and the fight is won. Parizad and Parwiz are drawn to each other, but their union is impossible because Parwiz is already married.
Meanwhile the King has been convinced by the Queen that Parwiz is a criminal. But he cannot accept it in his heart and suffers from terrible grief. The young prince Nadir tries to console him but to no avail. Pirmard appears before him and tells him the truth about the queen. An enraged King orders the Queen to be blinded and banishes her to the edge of the kingdom. But having lost almost everyone he grows distasteful of his kingly duties. He bequeaths his kingly powers to the Vazir Jargam and leaves. Grief and regret slowly start driving him insane. On the other hand, Parwiz’s wife Lalarukh has learnt from Pirmard that Parwiz is alive. She disguises herself as a man and reaches the genie’s palace. She overhears Parwiz confessing his love to Parizad and realises they are unable to fulfil their desires because of her. Moved, she does not reveal her true identity to him.
Parwiz and the incognito Lalarukh travel back to the kingdom where the Vazir has begun a reign of terror. After a struggle they are able to overcome the Vazir and his soldiers. But Lalarukh suffers a fatal wound in the process and perishes. The old King recovers and is reinstated to the throne. Pirmard asks the King to make Nadir the next King instead of Parwiz. Parwiz and Parizad are married and sent to liberate her home Egypt.