Morgana is at home, toying with her gun. She is upset over Eric's death and flips out, destroying her living room.
At the police station, Nathaniel is being interrogated. He admits to committing the crime. He annoys the police officer until he is escorted out of the room. Back at Morgana's place, the news is on, and they are running a story on the robbery and Demarest. That night, her sleep is fitful, full of dreams of the Djinn. She views the scene in the jail. In the jail, a man is insulting Demarest and he decides to grant the man a wish. The man decides that he would like to 'walk right through the bars'. Done. The Djinn pushes/squeezes the man directly through the bars, The man gets through, in a bloody pulp. As Morgan sees this vision, she hears the Djinn's voice and then a hand grabs her, waking her.
LATER. Morgana goes to a church where she sees Gregory, a friend. Morgana and Gregory talk about Eric's death and the devil.
In prison, Demarest is up to his old tricks. He overhears a man tell another inmate that he wants his lawyer to go f*** himself. Demarest walks over to the man and tells him that he can arrange that. A group of men approach Demarest and says something to Demarest about being the Wishmaster. Demarest's response is that he likes to flatter himself. The man threatens Demarest and says he'll be watching him. The first man, the one with the lawyer, is led off to see his lawyer. After the lawyer has said that he can get the man free, the Djinn proceeds with the wish until the man has died. Morgana has a vision of all this. That night, as she is sleeping, she hears the Djinn's voice and is grabbed by the 'mysterious hand' again.
Morgana begins to research Persian mythology and Ahura Mazda. Gregory stops by to visit while she is doing the research. They talk awhile, and Morgana tells Gregory about the voice and the visions. Gregory apologizes for his rudeness the other day. Morgana tells Gregory about the robbery and about "this Nathaniel Demarest guy" and how she's confused by his confession. She decides to visit Demarest in the prison.
In prison, a Russian named Osip approaches Demarest and they talk about the Russian's wish. Osip says the other prisoners call Demarest the devil. A guard walks over and takes Demarest to talk to Morgana. They talk about what went down in the gallery. Morgana gets a vision of the Djinn again and screams. The guards grab Demarest and lead him away. Later, Demarest is granting more wishes. The bullying man from an earlier scene walks over, with his sidekicks. Demarest tries to get the man to make a wish, but this only angers the man. The man tells Demarest that he'd like to get "wasted...tore up from the floor up" etc... Demarest fulfills the wish and the man's sidekicks begin to beat the crap out of their boss until the guards pull them off. The guard walks up to Demarest and says that everytime there is trouble, Demarest is around. The guard puts Demarest into solitary confinement.
Morgana is furthering her research and also learning how the Djinn was defeated the very first time. A mini whirlwind rips through her living room as she researches. She goes to Gregory and tells him all about it. Gregory hints that she might be imagining these things because she is under stress. So Gregory decides to visit Demarest himself. Demarest and Gregory have their own little chat. While Gregory and Morgana are leaving the prison, Gregory tells Morgana that Demarest is not of this world. Later, as Morgana showers, she 'sees' the Djinn outside of the shower stall. Gregory arrives, and they do more research on the Djinn, learning of the prophecy: when the Djinn collects a thousand souls, he will return to the one who woke him to grant the person three wishes. When done, the Djinn will rule the world. Only a woman pure of soul can send the Djinn back into his world. Morgana begins a purification process that includes returning the stolen artwork, and chopping off her own finger.
Meanwhile, at the prison, Demarest and Osip are playing chess when Demarest decides it's time to "blow this popsicle stand," when the guard interrupts them. The guard tells Demarest that he wishes he could slow dance with him… Compton style. "Done." They are in another room, and the Djinn appears before the guard and asks, "Shall we dance?" The scene cuts back outside and the guard, really the Djinn in disguise approaches Osip. They leave the prison…
The scene cuts to Morgan, who runs into the church to tell Gregory that Demarest and escaped the prison with a Russian named Osip. Gregory figures out where they must have went to…
Osip, drunk, is at a club with Demarest, dancing on the tabletops and bragging about Demarest's powers. Demarest is nearby, calmly sitting there, having a smoke. Osip kicks the rest of the Russians out because they make fun of him. Pushkin, head of the Russian mob group, enters and tells Osip to cool it. When he leaves, Osip tells Demarest that he despises Pushkin. Osip takes Demarest to Pushkin, so that Demarest can make a wish for Pushkin. Pushkin says he needs nothing. But Demarest talks him into making a wish and Pushkin says that he would like to have another crime lord's head. He gets it… on his own shoulders, in place of his own head. As the other Russians and Pushkin leave, Morgana runs in and shoots Demarest, who turns into the Djinn. Morgana runs off and the Russian stands there, looking shell-shocked.
At the church, Morgana is crying on the floor and Gregory finds her there. Morgana tells Gregory her doubts about the Djinn. She tells him about the Djinn's true face when she shot him. They visit Osip at the bar, who refuses to tell them the location of the Djinn and tries to shoot Morgana to stop her from wishing anytime in the future. The bullets don't harm Morgana at all.
The Djinn, meanwhile, is at a new location… Las Vegas. The Djinn is walking around with a representative of the casino who says the casino wishes all the gamblers good luck.
Morgana gets a phone call from Osip, telling them where the Djinn is and what he's doing. The car is actually from the Djinn himself, impersonating Osip.
The casino is in an uproar as all the gamblers are winning every hand. The representative is confused as he walks around and sees this. The Djinn is in his office, where he claims the souls of the people who he has granted a wish for. Gamblers begin to drop dead all over the casino. Morgana has a vision of this as she is on her way to the casino. Gregory and Morgana arrive at the casino. They go to Demarest's office. They try to defeat the Djinn there, but to no avail. They are 'zapped' to the Djinn's world, where Gregory is being crucified. Morgana asks for Gregory's release, do the Djinn grants her first wish by killing Gregory. Morgana further refuses to wish anymore and begins to 'tax the Djinn's patience'. The Djinn 'zaps' them back to the casino. Demarest and Morgana are standing there when the representative walks up and says he wishes that it would all end. The Djinn begins to kill people right and left, reminiscent of the party scenes in the first Wishmaster.
Morgana and the Djinn talk of the prophecy and Morgana wishes for her second wish to be that the guard that she shot at the gallery to be alive again. She reaches over and grabs the fire opal and recites the same words the alchemist did in the first movie. The Djinn is defeated yet again…
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