In the bustling Arabian city of Agrabah, a streetwise young man named Aladdin dreams of a life beyond his daily struggles for survival. While Aladdin is resourceful and good-hearted, he’s often at odds with the law, believing that one day he will be able to prove his worth and escape his lowly station. His life takes an unexpected turn when Aladdin encounters Princess Jasmine, who has escaped the confines of the palace to experience life amongst her people. Jasmine is resisting her father, the Sultan’s, pressure to choose a royal suitor, yearning for freedom and the chance to marry for love. Disguised as a commoner, Jasmine and Aladdin's fateful meeting ignites a connection between them, although societal rules threaten to keep them apart.

Aladdin's fortunes change when he is unwittingly led to the Cave of Wonders by the Sultan's treacherous advisor, Jafar, who seeks the power hidden within. The Cave, meant only for the "diamond in the rough," entraps Aladdin, but he manages to obtain a magical lamp. Unbeknownst to Jafar, Aladdin becomes the master of a flamboyant, fast-talking Genie who emerges from the lamp, promising to grant him three wishes with the power to alter his life's course. Torn between his desire to win Jasmine’s heart and the Genie’s own longing for freedom, Aladdin faces the challenge of using his wishes wisely while outsmarting Jafar's sinister machinations.