Apprentice shaman Tak has been having strange dreams after his first adventure. In his sleep he fights the Dream Guardian who possesses a mysterious staff. A creature calling itself the Dream Juju grabs the staff and disappears. With the help of your mentor Jibolba and his brother JB, you find out it was a vision about the theft of the Staff of Dreams, an item can open a portal for nightmare creatures.

You guide Tak in this side-scrolling 2D platformer as he sets off to retrieve the magical scepter. He can jump, use items and has an inventory, but you can also collect magical powers to build up the Juju meter. With a maxed out meter, you get access to special abilities such as double jumps, rolls, floating and ground stomps. These powers are also used to solve puzzles. Each region has a Yorbel Store where you can buy power-ups with yorbels, collected during the levels or earned by playing a mini-game.

By filling up magical bottles with energy, you get access to the parallel Dream World where hidden platforms in the regular levels are revealed. There are nine worlds to explore and you can save one game on the cartridge.