Kaboobie gets tired while flying Chuck and Nancy and they stop at the nearest island without caution, even though Shazzan had recently warned them to beware The Hunter, who, of course, happens to live on the island. When they get there, they are captured and The Hunter informs them that all who come to The Living Island become his quarry, before making them so.

The Master of Thieves, who wields a magic whip that can change people into whatever his whims desire, has a servant go out to bring him treasure to add to his collection. The servant, Joseph, decides to steal Kaboobie, Chuck and Nancy’s flying camel, given to them by Shazzan. He follows them and, during a magic show, sees Chuck brag about taking the magician down a peg. He tries the Cloak of Invisibility, but the magician outwits him. So then he gets Nancy to press their rings together to call Shazzan. When Joseph sees this, he decides the rings will be a greater prize for his master.

The regent of Kamura tries to assassinate the young rajah to gain control of his kingdom, but Chuck and Nancy intervene to help him.

The leader of the Sky Pirates sets his sights on Nancy and Chuck to gain control of Shazzan and, then, ultimate riches.