Sinbad returns to Bagdad after two long years at sea. He discovers that things are not as he left them. The city is now in the hands of an incompetent Prince and his devious grand vizier.

After the Nomad suffers damage in a storm the crew is forced to stop in the City of Mists. Sindbad wins the 'Jewel of the City' in a card game, only to discover that the 'Jewel' is Serendib, a 15 year old girl with magical powers.