The game is set in the mythical world of The Arabian Nights. Some time ago, the Evil One plagued the peaceful kingdom of Shahariyard. In order to save the King - who, by sorcery, had been transformed into a monkey - a group of heroes must find the Jewel of Seven Colors and release the evil hex.
However, formidable monsters are lurking along their path. Prince Lassid, Princess Lisa, Sinbad and Afshaal, each armed with their own special magic and powers, set out on the quest for the Jewel of Seven Colors. Suspenseful battle scenes, skillful sword fights and a "magic lamp," which feels all enemies in a single blow, await the players. Their adventure to restore peace to the kingdom now begins.
Arabian Magic has seven different stages, each with one of the powerful guardians awaiting the player at the end of each level. Each guardian, once defeated, will drop a jewel which forms a part of the Jewel of Seven Colors. Guardians, once defeated, will join the player and become a spirit you can summon using the same button as the genie. Each level is littered with vases and wooden chests which, when broken, reveal treasure items and power-ups. The game has slight RPG elements in that stats, such as life, can be raised. The game ends when the player has recovered the Jewel of Seven Colors, saved the King (making him human, in the process) and restored peace to Shahariyard.
Each player can select from four distinctive characters:
- Prince Lassid - the sword wielding hero, is a well-rounded character who has excellent speed and fast attacks.
- Princess Lisa - she has excellent reach with her magic-based attacks and also has a special spinning move, performed by tapping forward twice. She is a fast character but suffers defensively.
- Sinbad - is a powerful character with a very useful flaming sword attack, done by holding the attack button and then releasing.
- Afshael - much like Lisa, Afshael has excellent reach with his mace and also has a similar spinning attack done in the same manner. He has high defense but suffers in speed.
The four characters have the ability to summon a huge genie. The genie only stays on screen for a moment, but can be indirectly controlled to attack enemies with powerful blows.
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