Abbott and Costello meet the Mummy

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Two Americans, Bud Abbott and Lou Costello, who are stranded in Cairo, Egypt, happens to overhear Dr. Gustav Zoomer discussing the mummy Kharis, the guardian of the Tomb of Princess Ara. Apparently the mummy has a sacred medallion that shows where the treasure of Princess Ara can be found. The Followers of Kharis, led by Semu, overhear the conversation along with Madame Rontru, a businesswoman interested in stealing the treasure of Princess Ara.

Abbott and Costello go to the doctor's house to apply for the position to accompany the mummy back to America. However, two of Semu's men, Iben and Hetsut, murder the doctor and steal the mummy just before Abbott and Costello arrive. The medallion has been left behind, though, and is found by Abbott and Costello, who attempt to sell it. Rontru offers them $100, but Abbott suspects it is worth much more and asks for $5,000, which Rontru agrees to pay. She tells them to meet her at the Cairo Café, where Abbott and Costello learn from a waiter that the medallion is cursed. They frantically try to give it to one another, until it winds up in Costello's hamburger and he swallows it. Rontru arrives and drags them to a doctor's office to get a look at the medallion under a fluoroscope. However, she cannot read the medallion's inscribed instructions, which are in hieroglyphics. Semu arrives, claiming to be an archaeologist, and offers to guide them all to the tomb. Meanwhile, Semu's followers have returned life to Kharis.

They arrive at the tomb, where Costello learns of Semu's plans to murder them all. Rontru captures Semu, and one of her men, Charlie, disguises himself as a mummy and enters the temple. Abbott follows suit by disguising himself as a mummy, and he and Costello rescue Semu. Eventually all three mummies are in the same place at the same time, and the dynamite that Rontru intends to use to dig up the treasure detonates, killing Kharis and revealing the treasure. Abbott and Costello convince Semu to turn the temple into a nightclub to preserve the legend of Kharis and the three criminals who wanted to steal the treasure are presumably arrested.

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