The Peddler is a mysterious salesman, who is always looking out for his own best interest. His first appearance was in Disney's Aladdin.
During the first visit, he is seen chasing after Aladdin and Abu. According to Aladdin, Abu stole a lamp from the Peddler. After the lamp's return, Iago recognizes it as Jafar's lamp, saying he'd never mistake it. Returning to the Peddler's shop, Sora and friends try to purchase the lamp, but the Peddler's price is "a treasure fit for a sultan". Aladdin knows he can't just go to the palace asking for treasure, so Iago suggests another place: The Cave of Wonders. After traversing the desert, and overcoming the traps inside the cave, the gang returns to the shop with a beautiful gold statue adorned with priceless gems. However, they find the shop empty. Suddenly, they hear two voices outside: The Peddler and Pete. Running outside, Sora and friends find the Peddler being chased by Pete, who attempts to snatch the lamp, intending to release Jafar and turn him into a Heartless. The chase continues into the palace grounds, where Iago joins in by swooping down and scooping up the lamp in his beak, but crashes into a wall. After Sora and friends defeat Volcanic Lord and Blizzard Lord, they purchase the lamp, sealing it away deep inside the palace.
During their second visit, Sora, Donald, and Goofy beam down from the Gummi Ship into the Peddler's shop. It has changed much now; it is filled to the brim with treasure. Suddenly, Aladdin bursts in, yelling about how the Peddler had let Jafar out of the lamp. When Sora looks back, the Peddler has vanished. He is next seen in front of the palace after Sora and the gang return from Jafar's trap at the desert ruins. They interrogate him, causing him to spill the beans: He had broken into the palace to steal some treasure, when Jafar telepathically called to him, tricking the Peddler into releasing him.
Some time later, the Peddler met with a man in a black coat, though whether it was Riku or an Organization member is unknown. The man paid the Peddler in treasure to keep quiet about Jafar, claiming he'd get rid of him after Jafar became a Heartless. As the Peddler puts it, "It would have been a successful transaction if I hadn't been seen..."
Sora can visit the Peddler again in his shop, where he provides a skateboard for Sora to play the "Agrabah SB Time Attack" mini-game.
He is the first Agrabah resident the Data-Sora interacts with, and introduces him to a Gravity-based Debug Ability. After Sora fixes Agrabah, he wants a Guard Brace++, for which he'll trade Sora a Sardonyx Ring+.
Not much is known about the Peddler, save for his unyielding thirst for wealth. The Peddler is also a very good haggler, as he refuses to give the party Jafar's lamp unless they bring him "a treasure fit for a sultan."
The Peddler is a very small man with tanned skin, a thin, black goatee, and a rectangular mustache with a triangular gap at his philtum. His clothing is quite simple, consisting of a sky blue robe that reaches the floor, a faded red sash tied around his waist, and brown sandals. The most noticeable aspect of the Peddler's outfit is his ridiculously large, white turban, which is twice as big around as his own head.
The Peddler first appears in the opening of Aladdin, attempting to sell the viewer various pieces of junk before pulling out the magic lamp. To convince the viewer that the lamp is really magical, he tells them a story of its abilities, which is the story of Aladdin.
At one point in the production of Aladdin, the Peddler was going to both open and close the movie, and, at the end, reveal himself to be the Genie in disguise. This was dropped for the final film.
The Pedler's role in Kingdom Hearts II is borrowed from that of "Abis Mal", a clumsy bandit who finds and releases Jafar in The Return of Jafar, eventually becoming one of Aladdin's greatest foes.