The film opens with the family of archeologist Arun Chatterjee, who lives with his wife, Riya, and baby son, Aladin. When out on a holiday, Arun is attacked by a gang searching for a magic lamp, which Chatterjee has found, but has hidden somewhere. Arun and Riya Chatterjee are murdered; Aladin is raised by his grandfather. After his granddad’s death, a now grown-up Aladin Chatterjee (Ritesh Deshmukh) lives in the fictional city of Khwaish. He is lonely, and Kasim (Sahil Khan) and his gang members have bullied Aladin since his childhood. His life changes when Jasmine (Jacqueline Fernandez) enters the city, and Aladin immediately falls for her.
Jasmine has a birthday party for Aladin, and as a present Kasim gives Aladin a magic lamp for his birthday to embarrass him in front of Jasmine. However, this lamp turns out to be the magic lamp that Aladin’s father’s murderers were trying to find. Aladin rubs the lamp and releases the genie, Genius (Amitabh Bachchan). Desperate to grant him three wishes so his contract with the magic lamp can end, the rock-star Genius suddenly makes Aladin’s life very interesting but chaotic. Aladin does not want to make any wishes, but Genius enters Aladin’s dreams and finds out what he wants, getting his sleeping mind to make a wish: to make Jasmine fall in love with him. When he wakes up, he does not like what Genius has done and uses his second wish to return Jasmine to normal. His third wish is for Genius to help him woo Jasmine without using magic to make it happen. Genius does his best, but magic is really his strong suit. Still, as a result of Genius’s help/interference, Aladin stands up to Kasim and starts a relationship with Jasmine, and Genius teaches Kasim a lesson. Aladin’s future looks perfect, until the real threat looms on the horizon – the ex-genie, Ringmaster (Sanjay Dutt).