At the Skull and Dagger, Abis Mal and Haroud meet a green-skinned man who gives them a candle of Magma. After he disappears, Aladdin is about to take the candle, but Abu and Iago get caught stealing from the thieves. Everyone then notices Aladdin and they chase the three out of the Skull and Dagger. While Abis Mal and Haroud are chasing them, Aladdin drops baskets down on them. He then forces Abis to give him the candle. When Abis tells Haroud to give Aladdin the candle, Haroud blows a handful of dust into Aladdin's face, which he calls the Curse of Clumsiness, meaning that he made Aladdin clumsy.
Abu steals the candle from Haroud and gives it to Aladdin. When they run away with it, the curse makes Aladdin fall and when the thieves jump on the street rat, Haroud takes the candle and leaves with Abis Mal. After getting away from the thieves, Aladdin has to find a way to break the curse.
Everyone is at Jafar's lab looking for a cure for Aladdin. When they can't find anything, Aladdin makes Genie zap him. After Genie does so, he tests Aladdin to see if the idea really worked. It turns out it didn't. Iago sees from the book a picture of the Candle of Magma, which could possibly break the curse. However, at Abis Mal's hideout, Haroud tells Abis that there never was a curse and that it was just a ruse. When they light the candle, the ground cracks open and a volcano ifrit named Magma appears. Abis Mal's plan was to use Magma to make him sultan of Agrabah. At the Sultan's toy room, Magma appears to force him to let Abis Mal take his place, but the ruler refuses.
The ifrit then makes the city hot. Meanwhile, Aladdin's friends go to a room at the palace and find Aladdin tangled up in some curtains. Jasmine tells him that Agrabah needs him, but he says that he's "all washed up." Jasmine then tells him that he can do anything whether he's clumsy or not. Aladdin frees himself from the curtain and everybody but the Sultan goes to an elevator Genie created and goes to a landscape of fire. They see the villains and Aladdin runs too them, but he falls off a cliff towards a river of Magma. Genie saves him and puts him on a stalagmite.
When Magma is about to drip molten lava into Jasmine, Aladdin manages to free himself and he slides on a piece of melting ice, picks up a piece of rock, and slides over to Magma. He puts the rock on Magma's head and picks up Jasmine. When the ifrit removes the rock from his head, the gang gets out of the landscape. Magma then creates a pillar of fire underneath the ground he, Abis Mal, and Haroud are standing on, which lifts them up and takes them to the marketplace. They can't find the gang anywhere.
The gang is at the top of a minaret. Everyone then realizes that Aladdin broke the Curse of Clumsiness while saving Jasmine from Magma. They then realize that there never was a curse and that it was all just in Aladdin's imagination. Meanwhile, Haroud gets an idea that they should make Aladdin and the others come to them. So Abis Mal gives a speech to a crowd, telling them that he should have Aladdin show up or Magma will burn Agrabah. The gang hears the speech and gets an idea. When they get to Abis Mal, Genie puts a curse on the thug and Magma, which is a flu spell. Abis Mal has the flu but Magma doesn't, so the ifrit surrounds the gang with fire.
Carpet takes the gang and flies away, but Magma throws a ball of lava at one of the rug's tassels. Everyone lands back on the minaret and Genie wets the burning tassel. Magma then creates a ring of fire around the minaret, causing it to topple over. Everyone, except Aladdin, lands safely to the ground. Aladdin is dangling from a piece of fallen masonry over a well. He climbs up and stands on a piece of stone. Magma gets to the stone, but his feet are making it crumble, which causes the ifrit to fall. Aladdin jumps off the stone and lands next to the well. A burst of stream comes out of the well and Genie covers it with a metal lid. The lid pops off and Magma blasts off towards the sun.
Aladdin then wonders where Abis Mal is and Genie tells him that he has his own problems. At Abis Mal's hideout, Haroud tells the thug that there is no flu spell and that it's just a ruse. He then tells Abis that he's just being an idiot, making Abis Mal angry and hop after him.