18 years later, Aladdin is shown as the spoilt and lazy prince of Turkistan and Yasmine as a kind-hearted, ordinary thief. After Aladdin manages to catch her, they are banished from Turkistan, and they reach Baghdad along with Ginu. They start taking lessons from Rukhsaar, the principal of Baghdad's school (all the four have no memory of their past life). Gradually, Aladdin regains his memory about his previous life.
Malika is about to step outside the portal but Jinoo uses his power and closes the portal at the last moment. Aladdin, Yasmine and Jinoo celebrate their victory over successful stopping Malika from entering. But they're mistaken as Malika's face appears in the sky.
Baghdad is celebrating Jashn-e-Dilbar, the festival of love. Mallika enters Baghdad and starts following Aladdin. Later, Aladdin proposes to Yasmine. Will she accept?
Malika pretends to be Yasmine’s aunt and writes to her, informing about her visit to Baghdad. She states that her kingdom was destroyed in an earthquake and that’s the reason for her visit. Yasmine requests Aladdin to receive her. Aladdin and Jingoo go to receive the aunt, who’s actually Malika in disguise.
Malika and Aladdin enter the palace. JM and Yasmine are having a conversation when a glass vase breaks and JM believes it to be a bad omen. Meanwhile, Jinoo and other genies realise that their magic has suddenly stopped working.
Upon reaching the palace, Yasmine enquires with Aladdin about her aunt. She reminds him that he had to fetch her. Aladdin clarifies that she never turned up. Yasmine criticises her aunt. But Mallika, pretending to be the aunt, overhears Yasmine and comes face-to-face with her.
While on the palace tour with Aladdin and Yasmine, Malika senses that something is off. When she reaches the kitchen, she finds out that JM and CJ are performing magic in their genie form. Malika is totally shocked.
Malika knows the advantages that Aladdin has because of his three genies and a magic carpet. She knows that she needs to be in his good books. During dinner, Malika announces the engagement of Aladdin and Yasmine. Everybody is surprised by this sudden announcement.
The engagement preparations are in full swing. Malika has a hidden motive behind getting Aladdin and Yasmine engaged. She reveals this hidden motive, which is to destroy the world using an instrument.
Malika requires a dagger in order to put her plan in action. Malika can use this dagger to make a genie tonic which can be used to turn people into genies. Malika currently has only one of the genie tonics remaining. So, she requires the dagger to make some more of it. But there is one person stopping her from actualizing her plan.
When Malika tells her story about the missing dagger, she reveals that the one who stole her dagger is from Baghdad as he had Baghdad’s badge on him.
Malika is in search of the correct key that will bring her closer to finding the dagger. She uses her powers to summon all the keys to her room, after which all the people of Baghdad cannot find their keys. Aladdin is confused as to how everybody cannot find their keys in Baghdad. Aladdin and CJ enter Malika’s room as Malika is looking for the correct key in her room. What will happen next?