The Fantasy Adventure team travels back in time to the mystical city of Agrabah, where they hope to find Leo's birth parents, King Samson and Queen Jaina. On their first day there, they meet a street urchin named Aladdin and his trusty sidekick monkey named Abu. Despite stealing food and being chased by the palace gaurds,Aladdin dreams of a better life. Meanwhile, an evil sorcer named Jafar plots with his ally Neltharion, a rogue lion-warrior, to steal the throne of the sultan. In order to do so, they must fine the chosen ones to enter into the magical Cave of Wonders and retrieve a mysterious lamp.
The next morning in the market place, Leo discovers a talsiman in the shape of a lion's head. The merchant offers the talisman to Leo for free. Shortly afterward, they meet Princess Jasmine, the sultan's daughter who ran away because she was being force into choosing a husband. Not knowing who she really is, Aladdin falls in love with Jasmine at first sight. Simultaniously, Jafar and Neltharion discover that Aladdin and the Fantasy Adventure team are the chosen ones. They order the guards to track down the group and capture Aladdin. After freeing Aladdin from the palace dungeon, they accompanty two old hermits (Jafar and Neltharion in disguise) to the Cave of Wonders.
Venturing into the cave, the team befriends a magic carpet, who helps them find a magic lamp as well as a mysterious brooch. What seemed like an easy task turns into a dangerous race to avoid death after Abu touches the forbidden treasure and angers the tiger god who guards the cave. They barely make it to the exit when the two old men steal the lamp and leave everyone buried in the cave under the desert sands. Luckily, Abu had stolen the lamp back.
Aladdin unleashes an all-powerful Genie, who becomes Aladdin's servant and offers to grant him three wishes. After tricking the Genie to getting everyone out of the cave without using up a wish, Aladdin's makes a promise to free him from the lamp with his thrid wish. For his first official wish, Aladdin wishes to be a prince so that he may have a chance with Princess Jasmine. Everyone parades back into Agrabah, but Aladdin immediately gets shot down by Jasmine, who doesn't recognize him as the boy from the market place. Refusing to give up, Aladdin takes Jasmine for a romantic ride on the magic carpet. During which, he accidently reveals his identity to her.
Neltharion suggested to Jafar that he should marry the princess, but first they attempt to get "Prince Ali" out of the way. While Leo fills everyone in on the story of his origins, Jafar orders the guards to tie up Ali and drown him in the river, but he is saved by Leo and Genie (which counts as Aladdin's second wish). They return to the palace to confront Jafar and Neltharion, who see the lamp in Aladdin possession and elude the sultan's guards. Also, Leo reveals outloud Neltharion's true name: Deathwing.
Iago, Jafar's right hand parrot, steals the lamp and the amulet from Aladdin and Leo under Jafar's orders. Meanwhile, the Fantasy Adventure team find an ancient scroll that tells about the brooch's magical power, thus making Rae the owner of the brooch. At the Sultan's annoucement of Jasmine's engagement to "Prince Ali," Jafar makes his first wish to rule on high as Sultan of Agrabah. When Jasmine and the Sultan refuse to bow to him, Jafar then wishes to be the most powerful sorcer in the world, and banishes Aladdin to the ends of the Earth. Benny, Leo, Johnny and Rae fly on their new winged-lion to rescue Aladdin and Abu while the rest of the Fantasy Adventure team stays behind to find away back into the palace.
The leaders manage to return and confront Deathwing and Jafar in an all out duel for the fate of Agrabah, and the lives of their loved ones. Deathwing reveals his true form to everyone who were in shock as he transforms into a monsterous dragon, and in the end, the Team defeat Deathwing, Aladdin tricks Jafar into using his last wish to become an all-powerful genie, who gets sucked into a black magic lamp and sent flying by Genie over the desert and into the Cave of Wonders.
Leo is reunited with his long lost birth parents, and Aladdin keeps his promise to free Genie with his last wish. The Sultan sees that Aladdin is worth more than he appears, and gladly allows Princess Jasmine to marry whomever she deems worthy and she chooses Aladdin. Genie goes off to see the world, destined to meet the Fantasy Adventure team again in the future as well as accompany their allies, the Jungle Adventure team. After the Fantasy Adventure team leaves, Aladdin and Jasmine happily celebrate their engagement.
- This is the first adventure that features a new intro that incorporates Rae, Rafiki and Lion.
- This take place after Benny, Leo and Johnny's Adventures of Lion of Oz.
- Leo does the voice of Neltharion (Deathwing in Antro-lion form).
- Benny dubs an altered line for the Cave of Wonders.
- The adventure team uncover the legend of the Moon Princess and the Lion Spirit, explaining the brooch's origin. The music played on the background while researching the story is "Star-Stealing Girl" from Chrono Cross. The music will be a recurring theme when team learn of more mysteries about the Moon Princess.
- The adventure team joins Genie in singing "Prince Ali" on their way to the palace.
- Rae's battle gear and magic was inspired by Super Sailor Moon.
- At one point at the start of the story, Benny mentions a new time machine the he had tested out and used to save Leo's birth parents from death and brought them to Agrabah to keep them safe from harm. This new time machine will be revealed in the season 1 finale, Benny, Leo and Johnny's Adventures of Fantasmic.
- After Genie ends his song, "Friend like Me", Johnny breaks the fourth wall again by saying to the audience, "Let's see them do that on Phineas and Ferb!"
- At the part where Leo and Genie save Aladdin, Kairel compliments Leo, and he calls her "sis", which reveals that Kairel is Leo's sister.
- At the end of the movie, the Fantasy Adventure Crew takes King Samson and Queen Jaina back to their kingdom, the photographer from 101 Dalmations 2: Patch's London Adventure says to the people, "Hey lads! They're over here!" He then takes a picture of the King and Queen and the Fantasy Adventure Crew.
- The Fantasy Adventure Crew will return to Agrabah in Benny, Leo and Johnny's Adventures of Aladdin and The Return of Jafar and Benny, Leo and Johnny's Adventures of Aladdin and the King of Thieves.
- Genie will face Deathwing again in Pooh's Adventures of The Princess and the Goblin.