A small Sultan has stored his vast riches in a cavern in the desert. The Sultan charges his servant Hassan to guard the treasure. As the Sultan toddles off, Bugs Bunny ends up tunneling into the cavern. Hassan tries to recite the magic words to open the cave's door, but is at a loss.
Inside, Bugs surfaces, thinking that he and Daffy Duck have arrived at Pismo Beach. Daffy surfaces and is annoyed at first, but then lays eyes on the Sultan's treasure. Greedily, Daffy picks up what he can and tries to head for the exit, only to encounter Hassan, who has finally remembered the magic words ("Open Sesame"). Daffy scrambles back to Bugs, who pretends to be a genie ('the light-brown hare'). Pretending to grant Hassan a wish that the Sultan's treasure is his, they manage to distract the large guard long enough to get outside of the cave.
However, Daffy's greed gets the better of him, and he returns to the cave, to abscond with an enormous diamond, with Hassan close behind. Bugs fools the servant by pretending to be a fakker, and has Hassan climba a rope into a cloudbank overhead. This gets rid of Hassan, and Daffy joyfully returns to the cavern to collect his ill-gotten gain.
After compiling all the treasure, Daffy then finds a lamp. He polishes it up, and releases a real genie. However, Daffy assumes it's another trick, and angers the genie by trying to stuff him back in the lamp. As Bugs runs away, Daffy scoffs at the genie's threat of facing consequences.
Sometime later, Bugs manages to make it to Pismo Beach, where he's trying to pry open a clam. When he gets it open, he finds a pearl inside. But no sooner does he mention this, than Daffy pops out of a nearby hole, though shrunk to the size of a mouse. Greedily, he grabs onto the pearl claiming it for his own, much to Bug's irritation.