Continuing where Mickey no Tokyo Disneyland Daibōken left off, the attraction Cinderella's Castle at Disneyland has become haunted by ghosts and other villains, prompting Mickey to enter the castle and free it from the grip of the Horned King.

Mickey utilises both water-filled and air-filled balloons, the former used as throwing projectiles, trampolines and weights and the latter used to float in the air for a limited time. In each level, Mickey navigates through a labyrinthine network of passages, looking for the door that goes to the next level. Along the way, Mickey will have several encounters with the Magic Mirror for information. Mickey can also acquires upgrades to extend his maximum health and the time gas-filled balloons can float.