Iago and Abu are in Jafar's old chamber. Iago is looking for something, complaining about how disorganized Jafar was. He and Abu then find a magic ball called the Eye of Gazeem. The two rub it and the ball brings them to the netherworld. The animals see that they can go through things. Iago likes it at first and but then realises to his horror that he can no longer touch treasures.
The two decide to go to Aladdin for help. They see Aladdin and the others playing charades and they try to get Aladdin's attention, but he can't see or hear them. Abu and Iago then run into the Sultan's grandfather, Bobolonius. He tells the two that no one can see or hear them because, much to their anguish, they are dead. Then Ayam Aghoul shows up and tells Abu and Iago that they are not dead, but he can make them permanent residents of the netherworld.
Iago and Abu have to have someone rub the Eye of Gazeem to get them out. They go to Genie, who can hear them, but believes that it's a ghost. Bobolonius shows up and tells Iago and Abu that the only way they can get their attention is in their dreams.
A short while later, Jasmine is sleeping on her bed. Abu and Iago are about to get in her dream, but Genie wakes her up. When Jasmine leaves, Genie places traps for the "ghosts." Aladdin suggests that Genie sleeps, but he refuses because he still believes there are ghosts in the palace, making Abu and Iago annoyed.
The next morning, Aladdin has just fallen asleep. Iago and Abu get in his dream as he is busy fighting a giant eye. They are able to convince him that they're in a dream, as Iago tells him he's not wearing pants, which he's not. With their friend convinced, they explain to him that they're trapped in the netherworld. Aladdin wakes up and he and Genie go to Jafar's old chamber and see the Eye of Gazeem. In the netherworld, Ayam tells Abu and Iago that as soon as Aladdin rubs the Eye of Gazeem, he will be sucked into the land of the dead and he will make him a permanent resident as well. But Genie shackles Aladdin's ankle, making Ayam come up with another idea. Aladdin rubs the Eye of Gazeem and Genie gets in the netherworld, but Ayam gets out to fight Aladdin.
While Aladdin tries to rub the Eye of Gazeem, which is out of his reach, Bobolonius shows up in the netherworld and tells Genie, Iago, and Abu that Sultan usually sleeps late. So Abu and Iago get in the Sultan's dream, tell him he's not wearing pants, and direct him as he sleepwalks to Jafar's lab. As he collapses on the floor, Iago makes him rub the Eye of Gazeem. After Sultan does so, Ayam gets sucked back in the netherworld while Genie, Abu, and Iago get out. Iago then sees a giant black orb and wants to rub it, but Abu drags him away and everyone leaves Jafar's chamber.
- Scott Weinger as Aladdin
- Linda Larkin as Jasmine
- Dan Castellaneta as Genie
- Gilbert Gottfried as Iago
- Frank Walker as Abu
- Jim Cummings as Razoul, Bobolonius
- Hamilton Camp as Ayam Aghoul
- When Genie briefly turns himself into Tigger, his voice changes to that of Tigger's own actor, Jim Cummings, rather than Dan Castellaneta simply doing an impression.
- This episode reveals that the Sultan was called "Little Bobo" by his grandfather, Bobolonius.