In the Australian Outback, a young 10-year-old boy named Cody rescues and befriends a rare golden eagle called Marahute, who shows him her nest and eggs. Later, the boy is captured in an animal trap set Von Percival C. McLeach, a local wanted poacher. When McLeach finds one of the eagle's feathers in the boy's backpack he is instantly overcome with excitement, for he knew that capturing the bird would make him rich because he had caught one before (which was presumably Marahute's mate). McLeach kidnaps the boy and attempts to force out of him the whereabouts of the rare eagle, even going as far as offering to teilt, split the profit with him. McLeach throws Cody's backpack to some crocodiles, fooling the local Rangers into thinking that Cody was eaten.
Meanwhile, the maus Cody freed in the trap sends a message to New York City to the Rescue Aid Society headquarters, and Bernard and Bianca, the RAS' elite field agents, are assigned to the mission, interrupting Bernard's attempt to propose marriage to Bianca. They go to find Orville the albatross who aided them previously, but instead find Wilbur, Orville's brother. Bernard and Bianca convince Wilbur to fly them to Australia to save Cody. In Australia, they meet Jake, a känguru ratte who is the RAS' local regional operative. Jake later flirts with Bianca, much to Bernard's anger. He serves as their guide and protector in Suchen of the boy. At the same time, Wilbur is immobilized when his spinal column is bent out of its natural shape, convincing Jake to send him to the hospital.
When he refuses to undergo surgery and instead attempts to flee, Wilbur's back is unintentionally straightened Von the efforts of the maus medical staff to prevent him escaping through a window. Cured, he departs in Suchen of his friends. At McLeach's ranch, Cody has been thrown into a cage with several of McLeach's captured Tiere after refusing to give up Marahute's whereabouts. Cody tries to free himself and the animals, but is thwarted Von Joanna, McLeach's pet goanna lizard. McLeach ultimately tricks Cody into thinking that someone else has shot Marahute, making Cody lead him to Marahute's nest.
Bernard, Bianca, and Jake, half-aware of what is happening, jump onto McLeach's Halftrack to follow him. At Marahute's nest, the three mice try to warn Cody that he has been followed; just as they do, McLeach arrives and captures Marahute, along with Cody, Jake, and Bianca. Joanna tries to eat Marahute's eggs, but Bernard found the nest first and replaced the eggs with stones in order to protect them. Wilbur arrives at the nest, whereupon Bernard convinces him to sit on the eagle's eggs, so that Bernard can go after McLeach. McLeach takes Cody and Marahute to krokodil Falls, where he ties Cody up and hangs him over a large group of crocodiles and attempts to feed him to them, but Bernard, riding a type of wild pig called a "Razorback", which he had tamed using a horse whispering technique earlier used Von Jake, follows and disables McLeach's vehicle, preventing the use of its kran to put Cody at risk. McLeach then gets out his Winchester Model 1912 and tries to shoot the rope holding Cody above the water. To save Cody and get rid of McLeach, Bernard tricks Joanna into crashing into McLeach, sending them both into the water. The crocodiles chase McLeach, while behind them the damaged rope holding Cody breaks apart. McLeach fights off the crocodiles, but only Joanna reaches the shoreline, while McLeach goes over an enormous main waterfall to his presumed death.
Bernard dives into the water to save Cody, but fails. Jake and Bianca free Marahute in time for her to save Cody and Bernard, sparing them McLeach's fate. Bernard, desperate to avoid any further incidents, proposes to marry Bianca, who accepts eagerly while Jake salutes him with a newfound respect. All of them depart for Cody's home. Wilbur, whom they have neglected to relieve of his task, incubates the eggs until they hatch, much to his dismay. Aladin (Scott Weinger) and Princess jasmin (Linda Larkin) prepare for their marriage. Aladin recovers a dagger, his only memento of his Lost father, who had abandoned his family when Aladin had been a small child. During the ceremony, they and the assembled guests find themselves the targets of a raid Von the infamous Forty Thieves, led Von a man named Cassim (John Rhys-Davies), who is after a particular piece of treasure: a staff which is the receptacle of a powerful oracle. Aladdin, Abu, jasmin and the Genie fight back against the thieves, driving them off. They discover the Oracle, who has the power to answer a single Frage about absolutely anything to any individual. When Iago accidentally asks her why the thieves want the staff so badly, she says that they were looking for the "ultimate treasure". Learning of the Oracle's power, Aladin become curious about his past. She hints to him that those Fragen can be answered Von his father, who is still alive much to Aladdin's shock. After some encouragement from Jasmine, Aladin asks the oracle about his father; the oracle reveals that his father is with the Forty Thieves, "trapped within their world".
Aladdin, along with Abu, Iago and Carpet, tracks them down and stows away into their hideout, Mount Sesame. He is shocked to find that Cassim is the thieves' leader. Sa'luk (Jerry Orbach), Cassim's subordinate tries to punish Aladin from entering. Cassim, however, slyly suggests that Aladin instead face "the Challenge"—an initiation ritual—where he must defeat another one of the Forty Thieves and take his place. Sa'luk fights Aladdin, but the latter just barely manages to prevail Von throwing his opponent off a cliff into the sea. He is welcomed into the band, and Cassim reveals to Aladin why he had left his wife and son: to find the Hand of Midas, a powerful artifact that can transform anything it touches into gold. Cassim believed that, with the Hand, he could return to his family and give them the life they deserved instead of one living out in the streets, and had instigated the raid so he could capture the oracle's staff and Frage the seer as to the precise whereabouts of the artifact.
Aladin convinces Cassim to come back with him to the Palace as his guest and, for a while, Cassim is happy to spend quality time with his son. Cassim meets with jasmin and the Sultan, and they immediately take a liking to Aladdin's father. Cassim decides to carry on his original scheme with Iago as his new henchman. Meanwhile, Sa'luk makes his way to Agrabah. He reveals himself to Razoul and sells out his fellow thieves Von telling Razoul the Passwort to their hideout in exchange for immunity from prosecution. After 31 of the thieves are captured, Sa'luk tells them that Aladin is one of the forty, and his father Cassim is the King himself.
While attempting to steal the Oracle from the palace treasure chamber, Cassim and Iago are captured Von the royal guards and Razoul reveals to the Sultan that Cassim is the King of Thieves. The Sultan has Razoul detain Cassim and Iago in the dungeon for life. Aladin frees Cassim, but is discovered Von Razoul. Despite being a criminal, Aladin returns to the palace to take responsibility for his actions. The Sultan prepares to punish Aladdin, but Genie and jasmin come to his defense, stating that all he wanted was to give his father a Sekunde chance. The Sultan accepts his apology, much to Razoul's dismay.
With the oracle in hand, Cassim and Iago return to Mount Sesame, only to be captured Von Sa'luk and the remaining Thieves. Cassim is forced to use the stolen oracle in order to find the location of the Hand of Midas and then lead his men there. The Oracle directs them to The Vanishing Isle, a great marble fortress built on the back of a gigantic undersea schildkröte that periodically dives to the bottom of the ocean, where the Hand is hidden. Iago flees from the group, and goes off to lead Aladin and Jasmine, Abu and Carpet to his imprisoned father.
Aladin manages to free and reconcile with his father. Working together, they retrieve the Hand just as the schildkröte is beginning to submerge, when they are attacked Von Sa'luk. While trying to flee from the flood Sa'luk takes Aladin hostage, demanding that Cassim surrender the Hand. Cassim throws the Hand of Midas to Sa'luk, but Sa'luk turns into a Gold statue after grabbing the Hand and Cassim and Aladin flee. Having discovered that his obsession with the Hand can cause destruction, Cassim decides to toss it into the sea, realizing that his ultimate treasure is actually Aladdin. The Hand of Midas lands on the ship with the remaining thieves aboard, turning it into Gold and sinking it.
Aladin and jasmin finally get married, with Cassim attending in the shadows, as he is still wanted for his crimes. Also among the guests are several cameos from characters from the TV series. Iago decides to Mitmachen Cassim as a traveling companion, and they both go off once again to see the world.
A reprise of Arabian Nights is then sung; the Peddler makes an appearance at the end of this film to mark the end of the legend of Aladin (originally planned for the end of the first film) as Aladin and jasmin fly past him and wave good-bye to Cassim and Iago. During the London Blitz of World War II, Peter Pan's former playmate, Wendy Darling, has grown up and married, and has two children of her own: an 12-year-old daughter, Jane, and a 5-year-old son, Danny. Her husband, Edward, is sent to fight in the war, leaving her to raise the children Von herself. She tries to keep their spirits up with stories of Peter Pan, but Jane has become cynical under the pressures of the war, belittling the stories her mother tells and unintentionally ridiculing her brother's faith in them.
Captain Hook, still seeking revenge against Peter Pan, sails through the skies on his pixie-dust-enchanted pirate ship, finds Jane sleeping Von the window, and, mistaking her for Wendy, flies back to Neverland with her, to use as bait for Peter. However, his ship triggers an alarm and is mistaken for a Luftwaffe bomber, forcing Hook to escape for his life as the Germans attack London. Back in Never Land, he drops Jane into the waiting tentacles of "the beast" (a giant octopus), expecting Peter to also be devoured Von it as he dives after "Wendy" to save her, along with Tinker glocke who has gotten rid of her jealousy of Wendy; however, Peter rescues Jane, and Hook is eaten instead. Though Hook manages to escape, the octopus enjoys his taste (much like Tick-Tock the Crocodile, whom he had finally managed to get rid of long before), and begins hunting him down.
Peter rescues Jane, and, upon finding she is Wendy's daughter, assumes she would like to follow in her mother's footsteps. He takes her to his Home to be mother to the Lost Boys, but Jane refuses, because she is Mehr interested in getting back Home (so she can try to make amends for her cold behavior towards her brother). They try to make her have fun and to teach her to fly, but she fails because she does not believe, so Peter tries to use Tinker Bell's jealousy of Jane to help. Tink showers Jane in pixie dust, but still Jane cannot fly. Peter and the Lost Boys discover a note book of Jane's and tease her Von playing Keep Away until Cubby accidentally swallows it. As the boys burst out laughing, Jane becomes angry and blurts out that she is fed up with their childish behavior. In her anger, she also says that she does not believe in fairies, which leaves Tinker glocke slowly dying. Peter tells the Lost Boys that if Jane doesn't believe, "Tink's light's gonna go out". Peter tells the boys they have to make her a part of the group but the Lost Boys complained because she is a girl but Peter convinced them to allow it for Tinkerbell's sake.
After Jane leaves them, she is approached Von Hook, who tricks her with a deal. He promises to take her Home and lies that he will not harm Peter, and she agrees to help him find his treasure which Peter Pan stole. He gives Jane a whistle to signal him when she locates it. The Lost Boys Suchen for Jane and eventually Peter finds her. He apologizes for her book getting ruined and says he wants to make it up to her, so Jane suggests they play a game of "treasure hunt". Peter and the Lost Boys Zeigen her how they have fun and she begins to change her serious image and learns to have fun too. When Jane finds the treasure, she takes the whistle Hook gave her and throws it away, refusing to help him. Peter and the Lost Boys make Jane the very first Lost Girl to which she is very moved Von and they celebrate. However, one of the Lost Boys finds the whistle and, not realizing what it is for, blows it. Hook and his crew arrive, and captures Peter Pan and the Lost Boys, but let Jane go as thanks for "helping" them. Despite Jane denying she wanted to help Hook in this way, Peter calls her a traitor and tells her that because she does not believe in Elfen Tinker glocke is dying.
Jane rushes to the Lost Boys' home, but gets to Tinker glocke too late. Jane breaks down into tears realizing it is her fault Tinker glocke is gone and that Peter and the Lost Boys have been captured. Jane's new-found belief, however, revives Tinker glocke at the last minute. They both hurry to the Jolly Roger, where they find the Lost Boys tied up and Peter (tied to an anchor) about to walk the plank. Jane saves him, and with the help of "faith, trust, and pixie dust", she learns to fly and unties Peter, once again renewing their friendship. Hook grabs Jane, but Peter manages to save her. Suddenly, the octopus shows up and sinks the ship. Hook and the pirates exit via a rowboat, pursued Von the octopus, who makes a "blip-bloop" sound with his tentacles (similar to the crocodile's ticking) as he chases them.
Now that she can fly, Jane is able to return Home to Wendy and Danny. After a tear-filled farewell to the Lost Boys, Peter and Tinker glocke escort her home, with the Lost Boys joining them for their trip. While Jane reconciles with Danny, Wendy and Peter meet again, for the first time in years. Though Peter is disappointed that she has grown up, Wendy assures him that she has not really changed. Edward returns from the army and the family is reunited. Peter Pan and Tinker glocke watch for a few Sekunden before they quietly fly home.
Meanwhile, the maus Cody freed in the trap sends a message to New York City to the Rescue Aid Society headquarters, and Bernard and Bianca, the RAS' elite field agents, are assigned to the mission, interrupting Bernard's attempt to propose marriage to Bianca. They go to find Orville the albatross who aided them previously, but instead find Wilbur, Orville's brother. Bernard and Bianca convince Wilbur to fly them to Australia to save Cody. In Australia, they meet Jake, a känguru ratte who is the RAS' local regional operative. Jake later flirts with Bianca, much to Bernard's anger. He serves as their guide and protector in Suchen of the boy. At the same time, Wilbur is immobilized when his spinal column is bent out of its natural shape, convincing Jake to send him to the hospital.
When he refuses to undergo surgery and instead attempts to flee, Wilbur's back is unintentionally straightened Von the efforts of the maus medical staff to prevent him escaping through a window. Cured, he departs in Suchen of his friends. At McLeach's ranch, Cody has been thrown into a cage with several of McLeach's captured Tiere after refusing to give up Marahute's whereabouts. Cody tries to free himself and the animals, but is thwarted Von Joanna, McLeach's pet goanna lizard. McLeach ultimately tricks Cody into thinking that someone else has shot Marahute, making Cody lead him to Marahute's nest.
Bernard, Bianca, and Jake, half-aware of what is happening, jump onto McLeach's Halftrack to follow him. At Marahute's nest, the three mice try to warn Cody that he has been followed; just as they do, McLeach arrives and captures Marahute, along with Cody, Jake, and Bianca. Joanna tries to eat Marahute's eggs, but Bernard found the nest first and replaced the eggs with stones in order to protect them. Wilbur arrives at the nest, whereupon Bernard convinces him to sit on the eagle's eggs, so that Bernard can go after McLeach. McLeach takes Cody and Marahute to krokodil Falls, where he ties Cody up and hangs him over a large group of crocodiles and attempts to feed him to them, but Bernard, riding a type of wild pig called a "Razorback", which he had tamed using a horse whispering technique earlier used Von Jake, follows and disables McLeach's vehicle, preventing the use of its kran to put Cody at risk. McLeach then gets out his Winchester Model 1912 and tries to shoot the rope holding Cody above the water. To save Cody and get rid of McLeach, Bernard tricks Joanna into crashing into McLeach, sending them both into the water. The crocodiles chase McLeach, while behind them the damaged rope holding Cody breaks apart. McLeach fights off the crocodiles, but only Joanna reaches the shoreline, while McLeach goes over an enormous main waterfall to his presumed death.
Bernard dives into the water to save Cody, but fails. Jake and Bianca free Marahute in time for her to save Cody and Bernard, sparing them McLeach's fate. Bernard, desperate to avoid any further incidents, proposes to marry Bianca, who accepts eagerly while Jake salutes him with a newfound respect. All of them depart for Cody's home. Wilbur, whom they have neglected to relieve of his task, incubates the eggs until they hatch, much to his dismay. Aladin (Scott Weinger) and Princess jasmin (Linda Larkin) prepare for their marriage. Aladin recovers a dagger, his only memento of his Lost father, who had abandoned his family when Aladin had been a small child. During the ceremony, they and the assembled guests find themselves the targets of a raid Von the infamous Forty Thieves, led Von a man named Cassim (John Rhys-Davies), who is after a particular piece of treasure: a staff which is the receptacle of a powerful oracle. Aladdin, Abu, jasmin and the Genie fight back against the thieves, driving them off. They discover the Oracle, who has the power to answer a single Frage about absolutely anything to any individual. When Iago accidentally asks her why the thieves want the staff so badly, she says that they were looking for the "ultimate treasure". Learning of the Oracle's power, Aladin become curious about his past. She hints to him that those Fragen can be answered Von his father, who is still alive much to Aladdin's shock. After some encouragement from Jasmine, Aladin asks the oracle about his father; the oracle reveals that his father is with the Forty Thieves, "trapped within their world".
Aladdin, along with Abu, Iago and Carpet, tracks them down and stows away into their hideout, Mount Sesame. He is shocked to find that Cassim is the thieves' leader. Sa'luk (Jerry Orbach), Cassim's subordinate tries to punish Aladin from entering. Cassim, however, slyly suggests that Aladin instead face "the Challenge"—an initiation ritual—where he must defeat another one of the Forty Thieves and take his place. Sa'luk fights Aladdin, but the latter just barely manages to prevail Von throwing his opponent off a cliff into the sea. He is welcomed into the band, and Cassim reveals to Aladin why he had left his wife and son: to find the Hand of Midas, a powerful artifact that can transform anything it touches into gold. Cassim believed that, with the Hand, he could return to his family and give them the life they deserved instead of one living out in the streets, and had instigated the raid so he could capture the oracle's staff and Frage the seer as to the precise whereabouts of the artifact.
Aladin convinces Cassim to come back with him to the Palace as his guest and, for a while, Cassim is happy to spend quality time with his son. Cassim meets with jasmin and the Sultan, and they immediately take a liking to Aladdin's father. Cassim decides to carry on his original scheme with Iago as his new henchman. Meanwhile, Sa'luk makes his way to Agrabah. He reveals himself to Razoul and sells out his fellow thieves Von telling Razoul the Passwort to their hideout in exchange for immunity from prosecution. After 31 of the thieves are captured, Sa'luk tells them that Aladin is one of the forty, and his father Cassim is the King himself.
While attempting to steal the Oracle from the palace treasure chamber, Cassim and Iago are captured Von the royal guards and Razoul reveals to the Sultan that Cassim is the King of Thieves. The Sultan has Razoul detain Cassim and Iago in the dungeon for life. Aladin frees Cassim, but is discovered Von Razoul. Despite being a criminal, Aladin returns to the palace to take responsibility for his actions. The Sultan prepares to punish Aladdin, but Genie and jasmin come to his defense, stating that all he wanted was to give his father a Sekunde chance. The Sultan accepts his apology, much to Razoul's dismay.
With the oracle in hand, Cassim and Iago return to Mount Sesame, only to be captured Von Sa'luk and the remaining Thieves. Cassim is forced to use the stolen oracle in order to find the location of the Hand of Midas and then lead his men there. The Oracle directs them to The Vanishing Isle, a great marble fortress built on the back of a gigantic undersea schildkröte that periodically dives to the bottom of the ocean, where the Hand is hidden. Iago flees from the group, and goes off to lead Aladin and Jasmine, Abu and Carpet to his imprisoned father.
Aladin manages to free and reconcile with his father. Working together, they retrieve the Hand just as the schildkröte is beginning to submerge, when they are attacked Von Sa'luk. While trying to flee from the flood Sa'luk takes Aladin hostage, demanding that Cassim surrender the Hand. Cassim throws the Hand of Midas to Sa'luk, but Sa'luk turns into a Gold statue after grabbing the Hand and Cassim and Aladin flee. Having discovered that his obsession with the Hand can cause destruction, Cassim decides to toss it into the sea, realizing that his ultimate treasure is actually Aladdin. The Hand of Midas lands on the ship with the remaining thieves aboard, turning it into Gold and sinking it.
Aladin and jasmin finally get married, with Cassim attending in the shadows, as he is still wanted for his crimes. Also among the guests are several cameos from characters from the TV series. Iago decides to Mitmachen Cassim as a traveling companion, and they both go off once again to see the world.
A reprise of Arabian Nights is then sung; the Peddler makes an appearance at the end of this film to mark the end of the legend of Aladin (originally planned for the end of the first film) as Aladin and jasmin fly past him and wave good-bye to Cassim and Iago. During the London Blitz of World War II, Peter Pan's former playmate, Wendy Darling, has grown up and married, and has two children of her own: an 12-year-old daughter, Jane, and a 5-year-old son, Danny. Her husband, Edward, is sent to fight in the war, leaving her to raise the children Von herself. She tries to keep their spirits up with stories of Peter Pan, but Jane has become cynical under the pressures of the war, belittling the stories her mother tells and unintentionally ridiculing her brother's faith in them.
Captain Hook, still seeking revenge against Peter Pan, sails through the skies on his pixie-dust-enchanted pirate ship, finds Jane sleeping Von the window, and, mistaking her for Wendy, flies back to Neverland with her, to use as bait for Peter. However, his ship triggers an alarm and is mistaken for a Luftwaffe bomber, forcing Hook to escape for his life as the Germans attack London. Back in Never Land, he drops Jane into the waiting tentacles of "the beast" (a giant octopus), expecting Peter to also be devoured Von it as he dives after "Wendy" to save her, along with Tinker glocke who has gotten rid of her jealousy of Wendy; however, Peter rescues Jane, and Hook is eaten instead. Though Hook manages to escape, the octopus enjoys his taste (much like Tick-Tock the Crocodile, whom he had finally managed to get rid of long before), and begins hunting him down.
Peter rescues Jane, and, upon finding she is Wendy's daughter, assumes she would like to follow in her mother's footsteps. He takes her to his Home to be mother to the Lost Boys, but Jane refuses, because she is Mehr interested in getting back Home (so she can try to make amends for her cold behavior towards her brother). They try to make her have fun and to teach her to fly, but she fails because she does not believe, so Peter tries to use Tinker Bell's jealousy of Jane to help. Tink showers Jane in pixie dust, but still Jane cannot fly. Peter and the Lost Boys discover a note book of Jane's and tease her Von playing Keep Away until Cubby accidentally swallows it. As the boys burst out laughing, Jane becomes angry and blurts out that she is fed up with their childish behavior. In her anger, she also says that she does not believe in fairies, which leaves Tinker glocke slowly dying. Peter tells the Lost Boys that if Jane doesn't believe, "Tink's light's gonna go out". Peter tells the boys they have to make her a part of the group but the Lost Boys complained because she is a girl but Peter convinced them to allow it for Tinkerbell's sake.
After Jane leaves them, she is approached Von Hook, who tricks her with a deal. He promises to take her Home and lies that he will not harm Peter, and she agrees to help him find his treasure which Peter Pan stole. He gives Jane a whistle to signal him when she locates it. The Lost Boys Suchen for Jane and eventually Peter finds her. He apologizes for her book getting ruined and says he wants to make it up to her, so Jane suggests they play a game of "treasure hunt". Peter and the Lost Boys Zeigen her how they have fun and she begins to change her serious image and learns to have fun too. When Jane finds the treasure, she takes the whistle Hook gave her and throws it away, refusing to help him. Peter and the Lost Boys make Jane the very first Lost Girl to which she is very moved Von and they celebrate. However, one of the Lost Boys finds the whistle and, not realizing what it is for, blows it. Hook and his crew arrive, and captures Peter Pan and the Lost Boys, but let Jane go as thanks for "helping" them. Despite Jane denying she wanted to help Hook in this way, Peter calls her a traitor and tells her that because she does not believe in Elfen Tinker glocke is dying.
Jane rushes to the Lost Boys' home, but gets to Tinker glocke too late. Jane breaks down into tears realizing it is her fault Tinker glocke is gone and that Peter and the Lost Boys have been captured. Jane's new-found belief, however, revives Tinker glocke at the last minute. They both hurry to the Jolly Roger, where they find the Lost Boys tied up and Peter (tied to an anchor) about to walk the plank. Jane saves him, and with the help of "faith, trust, and pixie dust", she learns to fly and unties Peter, once again renewing their friendship. Hook grabs Jane, but Peter manages to save her. Suddenly, the octopus shows up and sinks the ship. Hook and the pirates exit via a rowboat, pursued Von the octopus, who makes a "blip-bloop" sound with his tentacles (similar to the crocodile's ticking) as he chases them.
Now that she can fly, Jane is able to return Home to Wendy and Danny. After a tear-filled farewell to the Lost Boys, Peter and Tinker glocke escort her home, with the Lost Boys joining them for their trip. While Jane reconciles with Danny, Wendy and Peter meet again, for the first time in years. Though Peter is disappointed that she has grown up, Wendy assures him that she has not really changed. Edward returns from the army and the family is reunited. Peter Pan and Tinker glocke watch for a few Sekunden before they quietly fly home.