Jafar comes for revenge on Aladdin, using a foolish thief and Iago's treachery to find a way back into power.
The sultan is grooming Aladdin as new vizier, future son-in-law and heir to the throne of Agrabah, stirring palatial unrest. Former vizier-usurper Jafar was banished to a genie lamp, but is dug up by ambitious simpleton crook Abis Mal, whom Jafar manages to manipulate his three wishes so he can regain his power and return to Agrabah for revenge. His egotistic formerly trusted parrot Iago has already managed to cash in on the palace's gratitude, but is facing conflicting loyalties when his former master reveals himself to him. Genie is finally back and must take on a magic duel against Jafar, whose dirty tricks land Aladdin and Jasmine in the dungeons.—KGF Vissers
When everything seems to be fine and peaceful, an old male enemy returns to seek revenge on everyone. The group must gain extra strength if they want to defeat and get rid of the male enemy once and for all so they can live without the troubles.—RECB3
Aladdin is adjusting to his new life as part of the upper crust. He and Princess Jasmine may not be married yet, but the pressures of palace society have already begun. On top of that, Iago (the parrot pet of Sultan's ex-vizir turned genie, Jafar) appears asking for help and no one is happy to see him. But things begin to look up when Genie returns from his trip around the world. Meanwhile, Jafar's black lamp is discovered by an idiot crook called Abis Mal. By using Abis Mal, Jafar makes his way back to Agrabah with ideas of payback for Aladdin and his friends.—Max Vaughn
A year after Jafar's defeat, Aladdin and Abu have settled into life at the Palace of Agrabah alongside Princess Jasmine and the Sultan. Though grateful for his new home, Aladdin still craves adventure. One day, he thwarts a gang of thieves led by the bumbling Abis Mal, returning the stolen goods to Agrabah's citizens.
Meanwhile, in the desert, Iago escapes from Jafar's lamp. Frustrated by Jafar's domineering ways, Iago refuses to release him and instead drops the lamp into a well. Seeking a fresh start, Iago flies to Agrabah, hoping to win Aladdin's favor and return to the palace. His plans take an unexpected turn when he saves Aladdin from an ambush by Abis Mal and his henchmen. Grateful for Iago's help, Aladdin allows him to stay in the palace and promises to speak to the Sultan on his behalf.
Elsewhere, Abis Mal discovers Jafar's lamp in the well and unwittingly releases him. Bound by the rules of genie servitude, Jafar manipulates the hapless Abis Mal into wasting his first two wishes, securing his cooperation in a plot to exact revenge on Aladdin.
Back at the palace, the Genie returns after a year of world travel, though his powers have diminished since his freedom. During a banquet that evening, the Sultan announces Aladdin as the new Royal Vizier. However, when Rajah chases Iago into the banquet, Aladdin asks the Sultan to pardon Iago-a request that frustrates Jasmine, as Aladdin hadn't confided in her. After encouragement from the Genie and Iago, Aladdin and Jasmine reconcile, and the Sultan reluctantly pardons Iago, asking Aladdin to keep an eye on him.
Jafar secretly infiltrates the palace and tricks Iago into luring Aladdin and the Sultan on a trip to a distant waterfall. During the journey, the Sultan forgives Aladdin and Iago, but Jafar, disguised as a band of sorcerer horsemen riding winged steeds, attacks. He captures the Sultan, Jasmine, Abu, and the Genie while sending Aladdin plummeting over the falls. Aladdin survives and rushes back to Agrabah to seek help, but Jafar, disguised as Jasmine, frames him for the Sultan's murder. Aladdin is arrested and sentenced to death. Overcome with guilt for aiding Jafar, Iago frees the Genie, who rescues Aladdin from execution.
Determined to defeat Jafar, Aladdin learns the only way to destroy him is to destroy his lamp. Meanwhile, Jafar consolidates his control over Agrabah, but Aladdin and his friends launch a final effort to retrieve the lamp. During the confrontation, Jafar, in his Genie form, overwhelms them, shattering the Carpet and creating a lava-filled chasm. He traps Aladdin on a sinking rock, leaving him helpless.
In a moment of redemption, Iago defies Jafar and grabs the lamp. Though injured in the process, he manages to kick the lamp into the lava. As the lamp is destroyed, Jafar disintegrates, his reign of terror coming to an end. With his magic undone, the palace and gardens are restored, and the Carpet is repaired. Though gravely injured, Iago survives and is welcomed back into the palace, finally earning forgiveness.
With peace restored, the Sultan offers Aladdin the position of Royal Vizier, but Aladdin declines, choosing instead to explore the world with Jasmine.
In a post-credits scene, Abis Mal laments that with Jafar gone and the lamp destroyed, he'll never get his third wish.
