The game's story is set in the bedroom of the player, presumably a child. Mickey Mouse is the guardian of a book in the player's room which features several stories with happy endings. However, the book's happy ending pages are ripped out by several Disney Villains, namely Frollo from The Hunchback of Notre Dame; Hades from Hercules; Jafar from Aladdin, & Governor Ratcliffe from Pocahontas, who alter the stories to their advantage, without the presence of happy endings. Mickey & the player venture into the worlds of the stories to correct the happy endings.
In the altered stories, Hades has taken away Hercules's strength & is forcing him to do humiliating fights in a stadium in the Underworld; Governor Ratcliffe has held Pocahontas hostage & the player must help John Smith find Ratcliffe's hideout in the forest to save Pocahontas; Jafar has stolen Genie's powers & became a genie himself so he can trick Aladdin to do bad things; & Frollo has forced Quasimodo to ring the bells for the rest of his life without food or water. The villains are defeated but then steal the happy ending pages, changing the bedroom into a battlefield mixed with their four areas. The player uses the book as a shield to deflect the villains' attacks & defeats each one (Frollo falls off a building to his death; Hades passes out & falls into the Pool of the Dead; Jafar gets sucked into a magic lamp, becoming a genie for the rest of his life; & Governor Ratcliffe surrenders when his fort is destroyed.) All of the happy endings are restored at the end of the game.