Cobra's Cave

The Cobra's Cave is a cave in the middle of the Haunted Dessert. It is in the Cobra's Cave that Jay going alone followed the Golden Cobra (Jafar's talisman).

After entering the cave he saw a silver light at the end of the tunnel which when he reached it revealed a chamber filled with gold and other treasure enough to rival that in The Cave of Wonders.

Despite the Golden Cobra's attempt to seduce Jay with treasures which the Cobra informed him was real and even promising to serve Jay if he abandoned his friends, Jay would not be deterred. Jay fought with the stick which spewed venom but Jay captured it. The Golden Cobra transformed into a humble walking stick.

The purpose of the cave was to test loyalty and by capturing the snake which was no longer gold,  Jay did something his father would not have which was to prove what was the more important than physical treasure.

After the talisman had been caught, it attempted to seduce him in. Just as Jay had acquired the Golden Cobra, the rocks in the cave began falling and disintegrating and the outline of a door appeared on one of the rocks. This door led to a magically created city where the four had been told to look for someplace called the "House of Horrors."