Scrooge, Huey, Dewey and Louie arrive in an Egyptian marketplace to meet up with Donald, who is on temporary leave from the Navy. Before Donald can meet up with his family, he is spotted by two strangers from a local tribe. Coincidentally, Donald bears a huge resemblance to a pharaoh known as "The Garbled One". The two men kidnap Donald right before Scrooge and the boys can meet up with him, and escape into the desert on camels.
In order to pursue the kidnappers through the desert, Scrooge hires a suspicious guide to provide him with camels. Scrooge and the boys don't know it yet, but the guide is a member of the same tribe as the kidnappers.
The kidnappers eventually arrive in the middle of the desert at the Palace of Garbabble, where the people there are awaiting the return of the Garbled One, except for the present ruler; Sarkus the High Priest of Garbabble. Donald is soon revealed to the people, who deem him the Garbled One, and prepare him for a special ceremony. But Sarkus has other ideas.
When Scrooge and Co. take a moment to stop at an old monument, the guide offers to take their picture, but ultimately lures them through a trap door, and into an underground chamber with closing walls. Louie explains that they could get out if only they could interpret the hieroglyphics on the wall. This reminds Dewey that they can read hieroglyphics with the Junior Woodchucks Guidebook, and enables him to find a secret exit. But they still have a long way to go before they can reach Donald.
Meanwhile, Donald is enjoying the luxurious treatment that the wenches at the palace are providing him, and is totally unaware of what is going on. Later that night, Sarkus enters a crypt and recites a spell which animates a mummy servant by the name of Ka-hoo-fu. Sarkus explains to Ka-hoo-fu that he must destroy Donald to be free of the mummy's curse.
While Donald is fast asleep, Ka-hoo-fu enters his chamber and attempts to attack him. After crushing a statue without hurting Donald, Ka-hoo-fu leaves, thinking his work is done. Donald then goes back to sleep, thinking the whole thing was a dream.
Back in the desert, Scrooge and the nephews get out of the underground passageways they were in. Dewey then realizes that the guide's camel tracks follow the kidnappers' camel tracks, so Scrooge suggests they follow them.
Back at the palace, Sarkus is shocked to see that Donald is now getting ready for the ceremony. Donald remembers that he needs to get back to his ship, but the guards won't let him leave. Seeing as how he'll have to be the new ruler, Donald tricks everyone into bowing before him and runs off, but he gets caught.
Scrooge and the nephews arrive at the ceremony, where the ancient spirit of the Garbled One is released from an urn, and possesses Donald's body. With the help of some enchanted moonbeams, Donald really becomes the Garbled One. But, Donald still retains his memories, and thinks he's the new admiral of his ship. Scrooge and the nephews are presented to Donald, but Donald doesn't quite recognize them. Although Donald is coerced into punishing them, Scrooge tells Donald that every great pharaoh had a pyramid, and agrees to build one with the nephews for Donald.
At the end of the day, only one block of the pyramid has been placed down. At night, the nephews wrap themselves in bandages, pretending to be a mummy in order to have the guide open the door and run off. While exploring the palace, Scrooge and the nephews run into Ka-hoo-fu, who leads them to Donald. Scrooge then fends off Ka-hoo-fu with fire from a torch.
Scrooge and the nephews attempt to repeat the ritual from the previous night on Donald. Sarkus sends Ka-hoo-fu after them, but the ritual works and Garbled One is released from Donald's body. The Garbled One then releases Ka-hoo-fu's spirit and together they fly off.
The next day, Sarkus is apprehended, and the ducks finally get to leave. However, Donald gets back to his ship two days late. Naturally, Admiral Grimace doesn't buy his story, and forces him to swab the aircraft's carrier entire deck.