King Sharyar fears for his Kingdom of Kerman from the threat of his brother King Shahrman's causing him to impose additional taxes on his people despite their poor state.
Shahrazad's rage causes her to meet with King Shahryar in his palace to warn him of his people coming out against him if he remains cruel. King Shahryar is shocked by her courage to talk to him, but insists on the imposition of taxes.
King Shahryar leaves to the Kerman market to speak to his people, ending in the people of Kerman rebelling against him who burn down the market despite the King's presence.
Shahryar's soldiers continue to search for Sinbad after Shahrazad helps him escape from the wrath of King Shahryar. Handal betrays King Shahryar following an alliance with King Shahrman, continuing with his attempts to facilitate Kerman's invasion.
Sinbad finds refuges in Khan Al-Za'fran owned by the slave girl 'Itab, who hides him in order for him to begin his plan to ignite a revolution against King Shahryar. Shahrman prepares a plant to extort money from Shahryar.
Sinbad begins to implement his plan calling on some of Kerman's traders to revolt against King Shahryar, however they do not act in fear of the King's wrath. Julnar plans to betray Shahryar following his departure to Shahrman's Kingdom.
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