When there is trouble in the Land of the Carpet Flyers, Wizard Whitebeard sends Wally and Woof to help. The two travelers soon meet Rudniesh, a carpet weaver a problem. It is only a few hours until the big Rug-Burner 500 race. The winner of the Rug-Burner 500 gets to rub a lamp, and if a genie comes out of the lamp they are declared the king. Rudniesh was going to enter the race, but his plans for a special racing rug were stolen along with everyone else's rugs. With only hours to go until the race, all the other racers want Rudniesh to weave them replacement rugs but the large workload is unbearable. Everyone suspects that the mean Ali Blobi stole the carpets in order to win the race. So Wally, Woof and Rudniesh follow the clues to uncover the mystery. Unable to retrieve the missing plans in time, Wally lends his rug to Rudniesh to enter the race. After a long and heated race between Ali Blobi and Rudniesh, Blobi comes out victorious.