While on a trip to the Azar Bazaar to see the Azar Gem, the girls encounter a mysterious parrot-like bird they name Bali. However soon after their genie gem powered ship stops working along with Shimmer and Shine's genie magic which includes levitation and wish magic. Eventually they figure out that Bali is the cause and Shine explains that Bali must be a Nil, a creature that causes all magic near it to stop working, though it does so unintentionally and only wishes to play. After getting their ship working again, they leave Bali and continue on their journey to the Azar Bazaar, however Bali follows them causing trouble with its magic nullification ability which effects any genies it encounters in Azar Bazaar. The girls try to lead it out of the Bazaar, however are forced to follow Bali around when she wants to play tag.
Meanwhile, Zeta finds an orange hysteria flower she uses to create a laughing potion, planning to use it on the genies so she can incapacitate them allowing her to steal the Azar Gem, which is on display levitating over a fountain in Azar Bazaar. The Azar Gem too is effected by Bali, as it stops levitating when Bali perches on it. Zeta's potion prevents the girls from stopping Zeta from stealing the Azar Gem, though Bali ends up freeing them as its ability nullifies the magic of Zeta's potion. The girls decide to use Bali's magic nullification ability to stop Zeta from getting away with the Azar Gem.