Watch The Palace of the Arabian Nights for Free: How to Stream the Movie Online at 123Movies. . A poor but honest man wins great wealth, and the hand of a beautiful princess, after facing a series of exciting trials in the tunnels and catacombs of ancient Araby. Guided by the mysterious Khalafar, the troupe (alongside him go some cowardly scholars) encounter skeletons, fire-breathing lizards, and mirages on their journey through the lower world.