The legendary city of Agrabah is in trouble again: the evil sorceress Nasira is out to avenge the death of her brother, the nefarious sorcerer Jafar. She begins her vengeful plot by taking over the palace with a spell and kidnapping Princess Jasmine and the Sultan; she then commands the guard's captain Razoul to bring Aladdin to her. The treacherous Nasira believes that if she collects a set of ancient relics that are spread all over Agrabah she might be able to revive Jafar and take over the world, and so she uses her captives to force Aladdin into doing this job for her. The story is told in the cut-scenes using the game engine.
- The Sultan
- Royal Guards
- Cave of Wonders
- Golden Scarab Beetle
- Wise Man
- Fire Eaters
- Black Spirits
- Skeletal Centaurs
- Sand Elementals
- Fire Elementals
- Royal Guards
- Kali Statues
- Man-Eating Plants
- Mummified Eagle Men
- Mummified Minotaurs
- Stone Demons
- Undead Guards
The player assumes control of three total characters in the game: Aladdin, Abu, and Jasmine. Aladdin's abilities range from sword fighting to jumping to stomping. Abu can jump, roll, and climb on walls to a certain degree. Jasmine's character is hiding in a pot for her level therefore the player can hide and hop. The player collects gold coins throughout each level and fights a variety of villains. The game's environments vary greatly and allow much interaction.
- Agrabah: Something terrible has happened at the Sultan’s Palace and Aladdin must get there right away. Unfortunately there are wanted posters with his name on it and guards hot on his tail. With the help of Genie and Abu, Aladdin navigates the streets of Agrabah.
- Sultan's Palace: The Sultan’s palace has been taken over by Nasira and her enchanted guards. Aladdin needs to make his way to the throne room to confront the sorceress and find out what has happened to the Sultan and Princess Jasmine.
- The Dungeon: Aladdin has been imprisoned in the dungeon and it is up to Abu to rescue him. Using his agility and skill, Abu has to dodge guards and booby traps in order to set Aladdin free.
- The Oasis: Aladdin follows the advice of a mystic to once again seek out the Cave of Wonders. First, he must find the lost scarab, key to the Cave’s entrance.
- The Cave of Wonders: A vast desert soon will unveil the mythical Cave of Wonders to Aladdin and Abu, who follow paths of gold and gems in search of the banished Genie. They then escape on Carpet before the cave collapses.
- The Pyramid: Aladdin’s quest to rescue his friends leads him to the ancient pyramids. First, he has to find the Book of the Dead to gain entry. Inside the dark tombs Aladdin must contend with mummies, snakes, Sphinx guards, while uncovering mechanical puzzles to make his way through the labyrinth of hallways. Aladdin braves the dangers to rescue Jasmine.
- The Crumbe of Palace: Jasmine returns to find the beloved palace in shambles and ruins after the tyrannical Nasira passed through it. With only a pot to hide in from witch's henchmen, Jasmine sneaks through the darkness of the palace to retrieve a vital road map for Aladdin to lead him onwards to the legendary Ancient City.
- The Ancient City: Aladdin runs at top speed along a mountainous cliff wall upwards towards an ancient, forgotten city searching for Nasira's secret lair. He enters a city in decay at night, populated by thieves and living skeletons.
- Nasira's Lair: The final battle between good and evil begins as Aladdin descends into the fiery depths of the volcano pit where Nasira prepares to bring back Jafar.
The game also contains mini games at the end of each level—pie throwing, surfing, skate-boarding, and cloud jumping.