Plot
Sinbad, the heir of the Caliph of Baghdad, makes landfall with his crew on the island of Colossa, where they encounter Sokurah the magician fleeing a giant cyclops. Though he escapes, Sokurah loses a magic lamp to the creature. Sinbad refuses his desperate pleas to return to Colossa because Parisa, Princess of Chandra, is aboard. Their coming marriage is meant to secure peace between her father's sultanate and Baghdad.
In Baghdad, Sokurah performs magic at the pre-wedding festivities, temporarily turning Parisa's handmaiden into a snake-like being. Despite Sokura's prowess and a dark prophecy about war between Baghdad and Chandra, the Caliph refuses to help him return to Colossa. Later that night, Sokurah secretly shrinks the princess, enraging her father, who declares war on Baghdad. Sinbad and the Caliph give in to Sokurah's demands after he explains that the eggshell of a Roc is needed for the potion that can restore Parisa, and it can be found only on Colossa. Sokurah provides Sinbad with the plans for a giant crossbow for protection against the island's giant creatures.
Sinbad recruits additional crewmen from among convicts. Before they reach Colossa, the cutthroats are inspired to mutiny by the treacherous Karim, and capture Sokurah, Sinbad, and his men. During a violent storm, the sounds of keening demons from a nearby island drive the crew nearly mad, endangering the ship. One of the men releases Sinbad so he can save them, after Karim falls to his death from the crow's nest.
On Colossa, Sinbad, Sokurah, and six of his crew enter the valley of the cyclops, followed by Sinbad's loyal aide Harufa. Sinbad and Sokurah split up. Sinbad and his men find the cyclops's treasure cave, but are captured and locked in a wooden cage. Instead of helping them, Sokurah retrieves the magic lamp, but is chased by the cyclops, who kills three of the men. With Parisa's aid, Sinbad manages to escape, then blinds the one-eyed creature and lures it off the edge of a cliff to its death. Sinbad decides to hold on to the lamp until Parisa is restored to normal size.
Sokurah leads Sinbad and his starving men to the nesting place of the giant Rocs. Out of hunger, Sinbad's men try to break open a Roc egg, causing it to hatch. The chick is killed by the men and roasted for food. Meanwhile, Parisa enters the magic lamp and befriends Barani, the childlike genie inside. He tells her how to summon him in exchange for her promise of freedom. The parent Roc returns and slays the men. Sinbad tries to summon the genie, but he is grabbed by the Roc and dropped, unconscious, into its nearby nest. Sokurah kills Harufa and abducts the princess, taking her to his underground fortress.
Sinbad awakens and rubs the magic lamp, summoning Barani, who takes Sinbad to Sokurah's fortress and helps him evade the chained dragon that stands guard. Sinbad reaches Sokurah, who restores the princess to normal. When Sinbad refuses to hand over the lamp, the magician animates a skeleton warrior, which Sinbad fights and destroys. With the help of the genie, Sinbad and Parisa make their way out of the cave, stopping to destroy the lamp by throwing it into a pool of lava, freeing Barani.
Leaving the cave, they encounter another cyclops. Sinbad releases the dragon, which fights and kills the creature. Sinbad and Parisa make their escape, but Sokurah and the dragon chase Sinbad's crew. The crewmen head to the beach, where they use a giant crossbow to impale the dragon, which makes it lose its balance and crush Sokurah to death before dying. Sinbad, Parisa, and the remaining crew depart for Baghdad. They are joined by Barani, now human, who has appointed himself Sinbad's cabin boy.
