The Ninja become celebrities following the destruction of the Cursed Realm. Yet, amid their newfound popularity, a new threat arises when a survivor of the Cursed Realm's destruction, Clouse, reappears. The Ninja attempt to stop him, but they are held up and arrive too late to stop him. In Stiix, Clouse finds the ancient Teapot of Tyrahn and releases Nadakhan the Djinn, who manipulates him into wishing for himself to be trapped in the teapot. Upon arriving at Stiix, the Ninja discover that they have been framed for a series of crimes and are pursued by the city's inhabitants. Nadakhan learns of the fate of his crew of Sky Pirates and captures Sensei Wu using the same tricks he used on Clouse.
Ronin offers to capture the Ninja in exchange for a 'clean slate', while Misako is captured by Nadakhan. The Ninja separate into pairs so that they can't all be arrested. At the library, Ronin hacks into Zane's system, shutting him down, and also captures Lloyd. Kai and Nya end up being captured by Ronin as well, followed by Jay and Cole. The Ninjas are taken to Kryptarium prison. Meanwhile, Nadakhan steals the Realm Crystal from Cyrus Borg's vault located in Hiroshi's labyrinth.
Nadakhan uses the Realm Crystal to bring back five members of his crew from other realms: Flintlocke, Clancee, Doubloon, Monkey Wretch, and Dogshank. They travel to Djinnjago, Nadakhan's home realm, only to learn that the realm is collapsing as a result of the Ninjas' destruction of the Cursed Realm. Nadakhan takes the Djinn Blade from his father and swears to avenge his people. In Kryptarium, the Ninjas encounter some old enemies like Captain Soto and hardened criminals like the Mechanic, who wants to use Zane for spare parts. Soto reveals that he was the one who trapped Nadakhan inside the Teapot of Tyrahn, after first using Tiger Widow venom to weaken him. The Ninjas break out of prison with Soto's help.
Nadakhan visits Jay and manipulates him into using one of his three wishes. Jay who wants to rekindle his relationship with Nya, wishes to be richer. Nadakhan reveals to Jay that he was adopted, and helps him access his inheritance from his late biological father, who turns out to be his favorite actor. The Sky Pirates attack the city to steal bits of land, which Nadakhan intends to use to build a new Djinn kingdom. The Ninjas try to stop them, but Kai gets captured by Nadakhan. The Ninjas recover a lantern from Nadakhan's ship, the Misfortune's Keep, which contains a map to the lair of the Tiger Widow.
As the Ninja are sailing to the island on the map, Nadakhan confronts Zane below deck. Zane attempts to use his wishes against Nadakhan, by first wishing for him to be unable to exploit loopholes in his wishes, but still gets tricked into getting caught. On the island, the Ninja learn that Jay used two of his wishes without telling them. Nya, angry with Jay, forces him to retrieve the Tiger Widow Venom alone. Nadakhan and his sky pirates ambush the Ninja, and the djinn takes the canister of venom from Jay, emptying out its contents. Jay is taken to the Misfortune's Keep, but Nya reveals that Nadakhan emptied out the wrong canister.
Nadakhan tries to break Jay's will, to make him wish himself away like Djinn's previous victims. He also reveals to Jay if Djinn royalty get married on Djinn Land, the Djinn Law will allow them to grant their own wishes, without restrictions. Jay tries to convince Flintlocke that Nadakhan is only using him and the other pirates, and at first, the pirates appear to believe him and help him escape and steal the Djinn Blade, but this turns out to be yet another one of Nadakhan's mind games. Meanwhile, Ronin and the Police Commissioner rescue the Ninjas from Tiger Widow Island, the latter apologizing for distrusting them earlier.
Jay managed to smuggle out a message to the other Ninja, who come up with a plan to infiltrate the Sky Pirates in an attempt to save Jay and defeat Nadakhan. They build a Raid Zeppelin, using a blueprint that Jay wrote his message on, and learn to talk like pirates. The plan fails, and the Ninja are captured. Nadakhan invites Nya to a feast and tries to convince her to marry him. The Ninja begin making wishes to turn Nadakhan's powers to their own advantage, as the djinn must grant any wish he hears only having the freedom to exploit loopholes in their wording. Cole and Lloyd are trapped in the Djinn Blade, but not before Lloyd, who previously wished to be as wise as Master Wu, sends Jay and Nya off into the clouds, telling Jay that he can fix everything with a wish coming from the heart.
Nya and Jay set off to the lighthouse, where they meet Echo Zane, a second Nindroid built by Zane's father. Nadakhan forces Clancee to wish for Nya's location to be revealed to him, and the Sky Pirates set out to capture them. Nya tells Jay that he needs to wish for Nadakhan to not be a Djinn. The Sky Pirates arrive, and Jay and Nya attempt to use Travellers' Tea, but they only have enough for one of them. Nya tells Jay that since he has the last wish, he needs to remain safe, and pushes him through the portal, while she herself is taken, prisoner.
Back in Ninjago City, Jay assembles a team of allies, consisting of Captain Soto, Skylor, the Police Commissioner, Ronin, Echo Zane, and Dareth. They head to Nadakhan's floating island, but the Djinn's scouts have warned him of their coming. Nya convinces Nadakhan to drop the Djinn Blade, allowing Jay to grab it and rescue Sensei Wu, Misako, and the other Ninja.
The marriage takes place, and Nadakhan has been given the power of infinite wishes. The crew realizes that Nadakhan wants the power all for himself, and join forces with the Ninja. Clancee tells Jay where to find the Tiger Widow Venom, which they left on the Misfortune's Keep during their failed infiltration, but gets banished, along with Doubloon and Monkey Wretch. Jay gives the venom dart to Flintlocke while the Ninja confront Nadakhan and Nya, whom Nadakhan turned into a reincarnation of his true love, Dilara. The Ninja manage to get Nadakhan out in the open, allowing Flintlocke to shoot him. The dart hits Nadakhan but a drop of the venom spills on Nya, killing her. A grieving Jay wishes that the Teapot of Tyrahn was never found in the first place. As it is a wish coming from the heart, the paralyzed Nadakhan grants it in good faith, reversing the events of Skybound, but leaving Jay's and Nya's memories intact. The season ends with Jay and Nya embracing, while Clouse is discovered by the people of Stiix and is prevented from recovering the Teapot.