The early life of the criminal who became the Arab Avenger is unknown.  He came to public attention in the early part of 1942.  Famed explorer Archibald Dalton had just returned from the Arabian Peninsula, where he recovered the fabled Bloodstone, an ancient gem that presumably cursed anyone who took from its temple repose.  Returning the Bloodstone to his home, Dalton is confronted by Smithers, long-time manager of his collection.   Smithers is haunted by the mysterious deaths of two of the expeditions members after the Bloodstone collection and wants to leave the house lest he be the next victim.  Dalton chides Smithers and tells him to sleep on it.  That night, a ghostly figure calling itself the Arab Avenger pays Smithers a visit, frightening him literally to death.

The next morning, Dalton, his daughter and butler Frisby find Smithers dead and call the FBI.  Woodley Allen and his neice Doris Lee, a friend of Dalton's daughter decide to spend a few days at Dalton Manor to learn more.  Ted Knight accompanies Doris and after dropping her off at the main gate decides to explore as Starman.  Allen and his G-Men have the manor surrounded and only a lonely lighthouse stands within sight of the house.

That evening the butler reports a terrible fright, that a phantom is afoot.  The Arab Avenger appears and kidnaps Dalton, his daughter and Doris and takes them via an underground tunnel to the abandoned lighthouse.  Starman hears cries for help and swoops in but he is assaulted by thugs calling themselves the Dervishes of Death, cultists devoted to the Bloodstone.  Wading through them, Starman defeats half a dozen of them and then follows the tunnel.  At the base of the lighthouse he is attacked by a bear and a tiger left there by the Arab Avenger.  Eluding them he climbs the lighthouse and attacks the Avenger but Doris attempts to escape and lands in quicksand, requiring Starman to rescue her and letting the Arab Avenger escape.

The Avenger returns to the captured Dalton's and forced the father to reveal the location of the Bloodstone: A hidden safe.  Racing back to the house, the Avenger opens the safe but a gas bomb explodes in his face, knocking him unconscious.  Starman and Allen arrive, where the G-Man explains he had booby-trapped the safe so that only Dalton could open it.  Starman clears away the Avenger's disguise and reveals Frisby, the Butler.   He later learns that the Dervishes were just hired thugs and the police take Frisby to jail.

The later activities of the Arab Avenger are unknown.