Mohamed, the Pasha's servant, is entrusted to guard the Sacred Carpet of Bagdad with his life. In New York, after banker Arthur Wadsworth forces his brother Horace to give up his inheritance, Horace joins a band of crooks and plans to rob the Wadsworth Bank by tunneling from the adjacent home of antique dealer George P. A. Jones. The gang follows Jones to Egypt and Bagdad, where Horace steals the carpet and sells it to Jones. Fortune Chedsoye, the innocent daughter of a gang member, falls in love with Jones. When Fortune discovers that Mohamed plans to kill Jones to retrieve the rug, she hides it with her mother's belongings. Mohamed forces Jones, Wadsworth, and Fortune into the desert, but they escape his torture during a sandstorm. Wadsworth then rejoins the gang at Jones' home in New York. When Fortune and Jones catch the crooks tunneling, Jones, sympathetically, gives them a two hour headstart before informing the police. Fortune and Jones keep the carpet, while in the East, Mohamed bows in resignation to Allah's will.

Director:
Colin Campbell	Director
Cast:
Kathlyn Williams	as Fortune Chedsoye
Wheeler Oakman	as George P. A. Jones
Guy Oliver	as Horace Wadsworth
Eugenie Besserer	as Mrs. Chedsoye
Frank Clark	as Major Callahan
Charles Clary	as Mohamed
Harry Lonsdale	as Arthur Wadsworth
Fred Huntley	as Wallace

This was the first release of the Selig Polyscope Co. through V-L-S-E, Inc.

Based on the novel The Carpet from Bagdad by Harold MacGrath (Indianapolis, 1911).