The story takes place "when old Baghdad was new and shiny", in an Arabian Nights atmosphere. Colman plays Hafiz, a middle-aged beggar and magician who parades about as the King of Beggars during the day, and as the Prince of Hassir during the night. As the Prince of Hassir he meets Lady Jamilla (Dietrich), the Queen of the Grand Vizier's harem, who knows he is a poseur but is fascinated by him.