Winnie the Pooh and his friends meet Alakazam, a young and brave monkey who has been encouraged by all the other monkeys to become their king. After attaining the throne, he becomes rude and dictatorial, and does not believe that human beings are greater than he is. Then he tricks/forces Merlin the magician to teach him magic (reluctantly on Merlin's part, who warns Alakazam that the powers he acquires now will bring him much unhappiness later). Alakazam becomes so arrogant that he abuses his magic powers, and chooses to go up to Majutsu Land (the Heavens), to challenge King Amo. He is defeated by King Amo. For his punishment, he is sentenced to serve as the bodyguard of Prince Amat on a pilgrimage with Pooh and his friends, Robin Hood, Little John and Jeremy the Crow joining them; in order to learn humility, mercy and to fight with wisdom. Ultimately, after saving the prince from King Gruesome and Bowser Koopa, he learns his lesson and becomes a true hero.
- Robin Hood, Little John, Jeremy the Crow, and Bowser Koopa guest star in this film.
- Sterling Holloway (the original voice of Winnie the Pooh) was the narrator of the English version of Alakazam the Great and also narrated the theatrical trailer of the film as well.
- Robin Hood, Little John, and Jeremy appearerd when Pooh and his friends are introduced to Prince Amat.
- King Gruesome is revealed to be Bowser's younger brother.
- The battle between good and evil scene (with the exception of the part where Alakazam fights King Gruesome on top of the Volcano) featured music from Willow (composed by James Horner).
- The ending credits featured the "Hikari" score from Kingdom Hearts.
- This film was dedicated in loving memory of Peter Fernandez (the uncredited speaking voice of Alakazam) who passed away in 2010.
- This is an NTSC film with NTSC bits from Winnie the Pooh and a Day for Eeyore, Winnie the Pooh and Christmas Too, The Tigger Movie, The Book of Pooh: Stories From the Heart, Winnie the Pooh: A Very Merry Pooh Year, Piglet's Big Movie, Robin Hood, and The Secret of NIMH 1 & 2 and PAL bits from The Many Adventures of Winnie the Pooh, Pooh's Grand Adventure: The Search For Christopher Robin, Winnie the Pooh: Boo to You Too, Pooh's Heffalump Movie, and Pooh's Heffalump Halloween Movie.