Jafar, Grand Vizier to the Sultan of Agrabah, is attempting to access the Cave of Wonders for a magical oil lamp containing a genie. He and his talking parrot, Iago, (along with Team Rocket (Jessie, James, and Meowth)) learn that only the metaphorical "Diamond in the Rough" can enter the cave.
As Ash Ketchum, Pikachu, Misty, Brock, and Togepi enter Agrabah, Brock tells the rest that there are shops at the marketplace before Ash thinks of buying something for Winnie the Pooh. Along the way, they see Aladdin escaping the guards right before they even meet him.
Jasmine, the Sultan's daughter, frustrated with "having her life lived for her" and the obligation of marriage, goes to Agrabah's marketplace. She meets street urchin Aladdin and his monkey Abu, along with Ash, and the gang, who show her around the marketplace. Jafar, using a machine, and Team Rocket discover that Aladdin is the "diamond in the rough" and Ash and his friends are with with him, and have them captured. Jasmine orders them released, but Jafar lies, telling her Aladdin, Ash, and the others are dead.
Jafar, disguised as an elderly man, releases Aladdin, Ash, and the gang from prison and leads them to the Cave of Wonders. The tiger-shaped head of the cave tells them to touch nothing but the lamp. Aladdin, Ash, and their friends enter the cave and encounter a magic carpet before finding the lamp. Abu tries to steal a ruby which causes a cave-in, but the carpet helps them to the entrance. Jafar tries to kill Aladdin after getting the lamp, but Abu bites Jafar and takes the lamp back. Abu, the carpet, Aladdin, Ash, and the others fall back into the cave just as it collapses.
When Aladdin awakens, he rubs the lamp, unleashing the Genie who reveals he will grant Aladdin three wishes. Aladdin, Ash, and the others dupe Genie into freeing them from the cave and on an oasis without using up a wish. While contemplating his wishes, Aladdin asks Genie's opinion. Genie admits he would wish for freedom, since he is a prisoner to his lamp. Aladdin promises to later wish him free. For his first wish, Aladdin asks to become a prince so he can marry Jasmine.
Jafar plans to trick the Sultan into marrying Jafar to Jasmine, then kill both of them. His plans are interrupted when Aladdin parades into the Sultan's palace as "Prince Ali". Ash and the others are with him as well. Jasmine rejects him, considering him a buffoon. That night, Aladdin meets Jasmine, and takes her on a magic carpet ride. Jasmine realizes that Ali is the boy from the marketplace; Aladdin fabricates a story that he sometimes dresses as a "commoner" to escape palace life. Aladdin returns her home and they kiss.
After delivering Jasmine, Aladdin, Ash, and their friends are captured by Jafar who orders the guards to chain Aladdin, Ash, and the others and throw them into the ocean. Aladdin, Ash, and their friends summon Genie, who rescues Aladdin, Ash, and the others as his second wish. Aladdin, Ash, and their friends return to the palace, revealing the vizier's plot to Jasmine and the Sultan. Jafar realizes Aladdin, Ash, and the gang's identities, and escapes from the Sultan's bodyguards. Surprised by Aladdin's bravery, the Sultan decides Aladdin should be his successor. Aladdin faces a moral dilemma, and decides to wait before wishing Genie free. Iago and Meowth steal Genie's lamp (before Ash and Pikcahu go after them) and bring it to Jessie, James, and Jafar, who uses his first wish to become sultan,. Jafar's second wish turns him into a powerful sorcerer sending Aladdin Abu & The Others to a far-off place.
Aladdin, Abu, And The Others use the magic carpet to return to Agrabah. Jasmine distracts Jafar as Aladdin & Ash attempts to steal the lamp, but the vizier & The bad guys notices. During the battle, Jafar transforms himself into a giant snake. Jafar boasts that he is "the most powerful being on Earth", Aladdin & Ash reminds him Genie is more powerful. Jafar uses his final wish to become a genie but forgets that genies are not free entities. Jafar is sucked into his new black lamp, dragging Iago with him. Genie flicks the lamp into the Cave of Wonders and also flicks Team Rocket back to where they belong.
Aladdin wishes for Genie's freedom, much to Genie's surprise and happiness. Since Jasmine loves Aladdin, the Sultan changes the law so they can marry. Genie leaves to explore the world while Aladdin and Jasmine celebrate their engagement.
- The film marks for the first debut of Ash and his friends.
- The film marks for the first debut of Team Rocket.
- Jessie, James, and Meowth are working for Jafar in this film.
- Winnie the Pooh is mentioned when Ash and the gang arrive in Agrabah.
- Ash and his friends will face Jafar again in Pooh's Adventures of 101 Dalmatians.
- Ash will continue the adventures in Ash's Adventures of Space Jam and Ash Ketchum Meets The Hunchback of Notre Dame.
- Like Pooh's Adventures of Aladdin, this is an NTSC film with NTSC bits from the Pokémon movies 1, 2, 3, and 5 and Pokémon: Mewtwo Returns and PAL bits from Pokémon 4Ever.
- Ash and his friends will continue their adventures with Aladdin in Winnie the Pooh and The Return of Jafar, Pooh's Adventures of Aladdin and the King of Thieves, and Pooh's Adventures of Aladdin: The Series.