Once, the city of Baghdad was ruled by a young caliph who was beloved by all his people. His best friend was the grand vizier. However, the caliph's wicked uncle, Kashnoor the wizard, did not like him because he wanted to be caliph himself.

So he lures the caliph and his faithful grand vizier into a trap. He mixes a powder which turns anyone who snorts it and says the magic word 'Mutabor' (I am transformed) into an animal. Repeating that same word and bowing to the east three times would return them to their human form, but those who laughed while transformed would forget the magic word and remain an animal forever.

As the caliph and his vizier try the powder, they see two storks fighting over a frog and turn into storks. Because they are so amused with the storks' quarrel, they laugh and immediately forget the magic word. Kashnoor assumes power and the storks fly away.

While resting in some ruins, they meet an owl who turns out to be a bewitched princess. She knows that all magicians will be meeting there later that night. They eavesdrop on the magicians and learn the magic word.

After they are transformed back into their former selves, they force Kashnoor to snort his own powder and, transformed into a stork, he is locked away in a cage, preventing him from ever bowing to the east.

Christel Strobel