Dark Cloud/Dark Heaven Castle

Robot vs. Genie
Go to the factory office in Yellow Drops, the building where you'd normally find Leden's shop, and talk to Osmond to start a cutscene. You see the Sun Giant take off. Meanwhile there is a scene inside the castle with Seda, the magician last seen in the Divine Beast Cave, and Simba, aka the Fairy King. Seda was king here 400 years ago, but traveled through time using something called the Forbidden Spell to reach this time. At first he was going to get the Atlamillia to fight the genie, but when he saw you had it he decided to help you instead. Seda's is slowly being taken over by the genie, and he doesn't have much time left to help you.

The Sun Giant makes its way through the clouds around the castle and finds the genie accompanied by Flag. A battle begins and after a mighty struggle the Sun Giant defeats the genie. But then Flag reveals a secret; what appeared to be the genie was really just a mouse who was trapped inside the urn and absorbed some of the genie's power. The real genie is a spirit who now inhabits Flag's body. (It's no wonder that Osmond wasn't that impressed by what looked like the Dark Genie when he first saw it.) The real genie uses his full power to destroy the Sun Giant, but the power is too much for Flag's body and the genie leaves to find another host. Dran comes to your rescue and takes you to the Dark Castle.