In Baghdad lived Ali Baba, the pauper, and his brother, the rich man Kassim Baba. Ali Baba earns his living by collecting firewood, but due to his working nature, he is not able to earn much, so he frequently asks his brother for help with money and food once in a while. His wealthy brother always looks down on him, saying that he lacks ambition to improve his life if he continues doing the same work. One day, while Ali Baba is collecting firewood near a cliff as always, he spots a group of thieves heading toward a nearby cave. The third installment of the 'Bujang Lapok' series based on the 1001 Arabian Nights tale of Ali Baba and the Forty Thieves. This film chronicles the adventures of Ali Baba with generous twists of Malay humor and general hilarity.

The film's story revolves around the tragic love affair between Kassim Selamat, a poor musician, and Sabariah, the only daughter of a wealthy woman. The movie is notable in that the opening act starts out as a light-hearted romantic comedy, but at the 30 minute mark turns into a dramatic tragedy. Like a number of P. Ramlee's works, the film criticizes the unofficial caste system that separates the wealthy from the poor.