Abu Wahb pretends to be crazy and rides a reed as if it were a horse, so he is called Bahlol. A valuable necklace is stolen, so the judge imprisons three people, so Bahlol helps identify the thief and acquit the other two.
Bahlol helps the needy with money, and the judge suspects Bahlol of being insane. Yahya asks the Caliph to build a mosque, so Bahlol changes the name of the mosque to Bahlol Mosque, and Yahya becomes angry and it becomes clear that his intention in building the mosque was to show off for himself and not for God.
Bahlol advises Labid to trade in iron and coal, and he makes a profit. However, Labid mocks Bahlol, so Bahlol advises him to trade in garlic and onions, and he loses his money. The judge tells him that Bahlol gave him the first time the advice of a wise man and the second time the advice of a madman.
The minister and the chief of police exploit their positions to take the goats for only three dirhams from the shepherd Ahnaf, who asks for help from Bahlol, who helps him retrieve his sheep before the Caliph.
Ahnaf goes to Baghdad and asks Abu Musa for water, who asks him to pay for it, but Bahlol tells him that God gave the water without a price. The Caliph gives Abu Dulamah money for praising him. Bahlol tells the Caliph that Abu Dulamah drinks wine.
The Caliph informs his wife, Zubaydah, that the Chief Justice, Ibn Sakib, was killed because of his agreement with the enemies. The Caliph refuses to help the displaced people of Baghdad, and Bahlol spends all his money on the poor of Karkh.
The fisherman Qusay lives in poverty, however, he gets lucky and catches a lot of fish. Bahlol pretends to be sick in front of the Caliph, and that the cure for him is Qusay’s fish, so the Caliph buys all the fish to treat Bahlol.
Abdullah complains to Bahlol about the Caliph's men who prevented him from farming the land he inherited, claiming that it belonged to the Caliph. Bahlol, with his eloquence in front of the Caliph, is able to give Abdullah his inheritance.
Qudamah complains to Bahlol about being swindled by a merchant in Karkh. Bahlol gives the merchant a lot of money to keep it in his trust, then Qudamah comes and takes back his money.
The Caliph issues a decree that Bahlol can meet him at any time, and Abu Ubaidah expels Bahlol from the mosque because of his bad appearance. The minister gives Abu Ubaidah money to praise the Caliph, and Bahlol reveals to the Caliph Abu Ubaidah’s false teachings in the mosque.
The Caliph asks Bahlol to accompany him during the Hajj season, and Jaafar refuses to sell his land to Junaid, so the judge demolishes Jaafar's house on the pretext that he dreamed of it, and the Caliph orders Junaid to be put in prison.
The mule collides with Zubaydah's procession, so the Caliph decides to ban donkeys and horses from entering the Karkh market. The police chief, Saad, arrests Ahnaf for violating the decision and bringing his donkey into the market, but Bahlol saves Ahnaf and releases him from prison.
Bahlol helps a poor widow, and Tarafa asks Bahlol to help him search for the thief who stole his money, so he accompanies him to Basra to recover his money.
Juhaim returns from his trip and finds that his wife, Maysoun, has married another man due to a false rumor about his death. Rafa' refuses to return Maysoun to her husband, so the governor demands that Juhaim answer questions to get his wife back, but Bahlol answers instead and Juhaim gets his wife back.
As Ubaid sells firewood, Saad imposes a fine on him for carrying firewood, however, Bahlol buys all the firewood from Ubaid so that the Ubaid can buy his son the food he desires.
Khuzaym agrees to borrow money from Harmalah, on the condition that his body be cut up if he does not pay his debt. Khuzaym loses his money and the judge orders the punishment to be carried out against him, but Bahlol saves him and gives him sheep to pay the debt.
The Caliph rebukes Bahlol for his transformation from a scholar to a madman, but the latter evades responding and demands that Ubaidah be released from prison and that the judge be brought in instead of him.
Wael plants an olive tree, and his neighbor takes it by a judge's ruling. Wael seeks help from Bahlol, who tells a similar story. Then Judge Junaid rules that Wael has the right to the tree.
Bahlol explains to the Caliph the meaning of the Straight Path by placing his feet in hot water, however, the Caliph is unable to do so. Bahlol tells him that those who do not possess the pleasures of this world cross the Path, but those who possess its pleasures are unable to cross it.
Jaafar buys iron to trade in it, and leaves it as a trust with his friend. The price of iron rises, so Jaafar returns and asks for the iron. His friend falsely claims that the rats ate it, and with the help of Bahlol, he confesses to selling the iron and Jaafar gets his right back.
Abu Musa dies in the Caliph’s prison, and Bahlol is able to judge fairly between two brothers whose father left them an inheritance of sheep, and he is able to divide the sheep between them fairly.
Zaid sets up a trap for Ubaid by inviting him to eat and then running away without paying the bill. The butcher Aktham asks Ubaid to pay the bill, but he does not pay and is imprisoned. Bahlol tricks Zaid to get the money back.
The Caliph tells the minister about his suspicions about the truth of Bahlol, who claims to be insane. The Caliph orders Bahlol to be watched to find out the truth about him. The minister tells the Caliph about the possibility of Bahlol conspiring with Musa bin Jaafar.
The minister arrests Bahlol, and in his house there is a letter from Musa bin Jaafar, the enemy of the Caliph, urging him to spy on him. Bahlol confesses to feigning madness, and the Caliph rebukes him for refusing the position of Chief Justice because he is a follower of Musa bin Jaafar, and imprisons him.