At Agrabah, Aladdin (Scott Weinger) and Princess Jasmine (Linda Larkin) prepare to get married. Guests are invited from all over the world for the ceremony. Genie uses his magic to decorate the entire city lavishly. Iago is busy collecting gifts from all guests. In the bustle, thieves infiltrate the city of Agrabah. Aladdin is getting cold feet right before the wedding and misses his father, whom he never knew. Aladdin says that he had no role model in life and knows nothing about raising a family. Genie convinces Aladdin that he has loving friends and that everything will turn out to be OK. During the ceremony, the legendary Forty Thieves appear, trying to steal a magical staff. They trigger an Elephant stampede to distract all the palace guards, but Aladin stops the King of thieves from stealing a particular staff that he was after. As Genie enters the fight, the thieves are forced to retreat. After driving them off, Aladdin and his friends discover the Oracle (CCH Pounder), a woman within the staff that can answer a single question about absolutely anything to any individual. She hints to Aladdin that all his questions can be answered by his father, who is alive still, much to everyone's surprise. According to the Oracle, Aladdin's father is with the Forty Thieves, "trapped within their world".Aladdin, along with Abu (Frank Welker), Iago (Gilbert Gottfried) and Carpet, tracks the thieves and stows away into their hideout, Mount Sesame. Genie stays back in Agrabah to help fix the damage to the palace. There, he discovers that his father Cassim (John Rhys-Davies) is actually the King of Thieves, their leader. Cassim confirms that Aladdin is his son since he possesses the dagger that he gave his wife years ago. The two have a heartfelt reunion before Cassim's chief subordinate Sa'Luk (Jerry Orbach) tries to punish Aladdin for infiltrating their hideout. Cassim, however, suggests that Aladdin instead face the initiation ritual known as "the Challenge": if he defeats another one of the Forty Thieves, he can take their place. Sa'Luk challenges Aladdin and is huge compared to the wiry Aladdin. Aladdin defeats Sa'Luk, after being initially pushed back, and is welcomed into the band. Sa'Luk falls off the mountain and is presumed dead. Sa'Luk survives the fall and vows revenge on Cassim and Aladdin.Cassim then reveals why he left his wife and son: to find the Hand of Midas, an artifact that can transform anything it touches into gold. Cassim believed that, with it, he could return to his family and get them out of poverty. With the staff, he could question the oracle as to the precise whereabouts of the artifact. The artifact is rumored to be on the Vanishing Island which never appears in the same location twice. Cassim says that he returned to Agrabah one night and found no trace of his family, and though it was lost forever. Aladdin convinces Cassim to return with him to Agrabah to live an honest life. Initially hesitant, Cassim agrees after realizing that the wedding can be his last chance to get the Oracle.For a while, Cassim is glad to spend quality time with Aladdin and his friends. However, he decides to carry on his original scheme with Iago as his new henchman.Meanwhile, Sa'Luk travels to Agrabah. There, he sells out his fellow thieves by telling Razoul (Jim Cummings), the Captain of Agrabah's Royal Guard, the password to their hideout in exchange for immunity from prosecution. After all but seven of the thieves are captured, Razoul learns from Sa'Luk that Aladdin is one of the forty, and his father Cassim is the King himself. While attempting to steal the Oracle, Cassim and Iago are captured by the royal guards, and Razoul reveals to the Sultan (Val Bettin) that Cassim is the King of Thieves. The Sultan has Cassim and Iago imprisoned for life. Aladdin frees Cassim and then leads Razoul and his guards away from the dungeons, to allow Cassim to escape the palace. Cassim and Aladdin go towards Mount Sesame. Despite knowing that he would be punished, Aladdin returns to the palace to take responsibility for his actions. The Sultan gets ready to punish Aladdin, but Genie (Robin Williams) and Jasmine come to his defense, stating that all he wanted was to give his father a second chance. Understanding this, The Sultan accepts Aladdin's apology and resumes preparations for the wedding.Cassim and Iago return to Mount Sesame, only to be captured by Sa'Luk and the remaining seven thieves (Sa'Luk deceived them into believing Cassim had betrayed them to Razoul), who force them to use the oracle to find the location of the Hand of Midas. The Oracle directs them to the Vanishing Isle, a marble fortress built on the back of an enormous turtle that periodically dives to the bottom of the ocean, where the Hand is hidden. Iago escapes and goes off to lead Aladdin, Jasmine, Abu and Carpet to Cassim. Aladdin manages to free and reconcile with his father. Working together, they retrieve the Hand just as the turtle is starting to submerge.However, they are ambushed by Sa'Luk, who takes Aladdin hostage, demanding that Cassim surrender the Hand. Cassim throws the Hand to Sa'Luk, who grabs it by the wrong end and is transformed into a lifeless gold statue. Realizing that his obsession has only brought trouble and his son is actually his ultimate treasure, Cassim throws the Hand into the ship with the remaining thieves aboard, turning it into gold and sinking it.That night, Aladdin and Jasmine get married, with all their friends and family present. Cassim watches this from afar, since he is still a wanted man, and Iago decides to join him on his travels. Aladdin and Cassim then wave good-bye to each other.