Abu Nuwas sits in the bazaar telling stories to the passersby he can tempt to pay. When Najda, a poor girl, offers him a packet of spice for a story, Abu Nuwas launches into a tale about a girl named Setara and her genie. As did Scheherazade, he leaves the girl hanging in the middle of each yarn to keep her coming back for more. While relating the fantastical accounts, Abu Nuwas learns more of the spice girl's life, then finds a way to save her from a forced marriage and find a better life.
The teller of tales relates the adventures of a girl and her genie as they encounter the creatures of legend and folklore: a lonely cave demon seeking a home; a flying, fire-breathing horse who has lost his mate; a dragon searching for his family; an evil genie hunting for the man who bottled him; and a merboy cast out of his undersea kingdom.