Abu and Iago get in the Palace treasure room. Iago then asks Genie to drill a hole in the ceiling. After Genie does so, gold dust comes out of the hole and Iago tries to steal it. But then, the parrot gets caught by Aladdin and Jasmine. He then gets tired of being greedy and says that he's going to let the world know about gold. When Iago leaves the palace, Aladdin tells Abu to follow him.
At the marketplace, Iago shows everyone that he is covered with gold dust. No one seems to be interested until the parrot gives them his golden feathers. Abis Mal and Haroud see what's going on and the two want some of Iago's golden feathers, but Abu drags the parrot away before they get to where he was. Iago is now missing a lot of feathers and cannot fly due to the gold dust on him being too heavy. The men see the animals and start going after Iago, but they lose him. Iago gets on a rooftop, only to encounter another man who wants his golden feathers and chases him. The parrot jumps off the rooftop and lands in a barrel of water.
He then finds himself at Aladdin's hovel, with Aladdin, Abu, and Genie. Genie zaps him to get his feathers back. The parrot is back to normal, except the feathers on his head are sticking straight up. He decides to stop his greed and start giving things away. The next day, Everyone at Aladdin's hovel, except Iago who is gone, wakes up. Genie finds his lamp missing and Abu finds his hat missing as well. They all go to the marketplace to find Iago. The parrot gave Genie's lamp and Abu's hat away. Abu finds his hat on a man's head and takes it, while Genie is looking for a replacement for his lamp.
Meanwhile, Akbar, one of the thieves from the Skull and Dagger, is stealing items, but when he sees Iago talking about rich and poor people, he decides to give things away as well. He and Iago later team up. At the palace, everyone is worried about Iago. Aladdin decides to get Iago's greed back. At the Skull and Dagger, Abis Mal and Haroud see Iago and Akbar enter with treasures. Abu gets in and sees Iago. The parrot gives the thieves the treasure and they all fight for it. Iago and Akbar then leave with a sack and treasure. When Abis Mal is about to go after Iago, Haroud suggests that they catch Abu and trap him.
Meanwhile, the merchants and the guards are looking for Iago. When Iago and Akbar get to another street, they see Abis Mal and Haroud with Abu in a cage. Abis Mal asks Iago to take them to the treasure. Iago takes the thieves to a desert where there are rock formations. Abis Mal and Haroud go up on one of the rocks and see nothing there. They realize Iago tricked them. The parrot frees Abu from the cage and the two start running, but then stop when they see the merchants and the guards run towards them.
Abu takes Iago to the top of the rock, but Abis Mal is still up there. Everyone now jumps at the parrot at once. They hit the rock and the ground shakes and a fountain of water comes out. Iago is unconscious, but then he smells jewels and gets up. The guards are about to go after him, but Iago blames everything on Abis Mal and Haroud. The guards then go after the men.
Akbar decides to donate the jewels to the orphanage, but Iago wants the jewels that are in the sack the thief's holding. Akbar then takes Genie's lamp out of the sack. After Genie gets his lamp back, Iago is begging for Akbar to give him the jewels.