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This spectacular romantic fantasy, in the best tradition of the Arabian Nights, features the boy thief Abu (Sabu) who aids the deposed King of Bagdad (John Justin) to try and thwart the evil usurper Jaffar (Conrad Veidt). When Ahmad sets eyes on the beautiful princess (June Duprez), daughter of the sultan, he falls hopelessly in love. Sadly, she is promised to Jaffar. Abu and Ahmad embark on a series of fantastic adventures, where they encounter a giant spider's web, a mighty genie and a flying white horse.

In recognition of The Thief Of Bagdad's quality and of the new technical standards it set, the film won three Academy Awards for special effects, colour art direction and colour cinematography.