In Bagdad, the young and naive Sultan Ahmad is curious about the behavior of his people. The Grand Vizier Jaffar convinces Ahmad to walk through the city disguised as a subject to know his people. Then he seizes the power telling to the inhabitants that Ahmad has died while he sends his army to arrest the Sultan that is thrown into the dungeons and sentenced to death. Ahmad befriends the young thief Abu that helps him to escape from the prison. They flee to Basra and plan to travel abroad with Sinbad. However Ahmad stumbles upon the beautiful princess and they fall in love with each other. But the evil Jaffar has also traveled to Basra to propose to marry the princess. When they see each other, Jaffar uses magic to blind Ahmad and turn Abu into a dog. Is their love doomed?

After the old-books shop closes, portraits of the Strumpet, Death, and the Devil come to life and amuse themselves by reading stories--about themselves, of course, in various guises and eras. Four of the stories are literary horror stories (one by Poe, one by R. L. Stevenson), and the last one is a comedy involving a fake haunting.

The owner of a Waxmuseum needs for three of his models stories to be told to the audience. For that reason he has hired a writer, who after one look athe owner's pretty daughter, starts writing stories featuring the models, the daughter and himself. In the first, he is a baker, married to the girl, who is a little bit too much flirting with the customers, among them the wezir of sultan Harun Al-Rashid, who has just ordered his execution because the smell from the bakery is drifting to his palce, yet Harun Al-Rashid wants to meet the beautiful girl himself, while an angry baker is trying to get the Sultan's whishing ring to proof he's not a weakling... The second story is about Tzar Ivan the Terrible who likes watching people die together with his court-chemist. When he orders the execution of the chemist, the chemist thinks of a nice revanche, but till the revanche works, a nobleman is murdered...