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The movie is an adaptation of the classic Arabian Nights tale, "Alibaba and the Forty Thieves." The story revolves around Alibaba (played by Nagarjuna), a poor but kind-hearted woodcutter who stumbles upon a group of 40 thieves, led by the cunning and enigmatic Kasim (played by Sumanth). The thieves, hiding in a cave filled with treasures, are outsmarted by Alibaba, who gains access to the cave with the help of a clever slave girl, Mariam (played by Gracy Singh).

The movie's soundtrack, composed by R. P. Patnaik, was another highlight, with catchy tunes and memorable lyrics that became chartbusters. The songs, such as "Mast Magan" and "Premante Iddare," are still popular among music enthusiasts.

The 2004 version of "Alibaba and 40 Thieves" was a visual treat, with elaborate sets, stunning costumes, and impressive special effects. The film's cinematography was breathtaking, transporting viewers to a world of grandeur and opulence. The action sequences were well-choreographed, and the comedy scenes provided much-needed relief.