Play as Mickey Mouse in this redesigned version of the classic Sega Genesis/Mega Drive game! Mickey's main method of attack is to "bounce" while jumping, which can be used to defeat enemies or bounce upwards to higher ground. Mickey can also collect projectiles, such as apples and marbles, to throw at opponents. There are various items to earn bonuses, increase the player's health, and give extra attempts.

Each level ends with a boss battle against each Illusion Master (Mizrabel's minder) where Mickey can earn gems, although the last two levels award gems halfway through. After clearing all five levels, earning all the gems will open the passage to the Witch's Tower. There, the player will face the final boss. Mizrabel the Giant and a younger version (shaped like a cross between the Queen from Snow White and the Seven Dwarfs and Sleepy Hollow from Sleeping Beauty).

There is also a simple mode where players simply pass the truncated version of the first three levels without the boss fight. Players control Mickey Mouse into the Castle of Illusion in order to save Mickey Mouse from the evil witch Mizrabel, who wants to steal Minnie's youth.

After meeting and talking with the real owner of the castle and the king, Mickey is told that to defeat Mizrabel, he must find the seven rainbow gems. Most of these seven gems are kept in various illusion-filled worlds (called levels in the game), guarded by Mizrabel's followers, who are known as Illusion Masters. In addition to the Illusion Masters, there are strange creatures - such as magic mushrooms, toy soldiers, unicycles playing with balls, clowns on horses, and knights in armor that Mickey must face.

After thanking the Master of the City and hastily entering the castle corridor, Mickey begins searching five doors, each leading to a different floor. These floors are the Enchanted Forest, the Toy Zone, the Storm, the Dessert Factory, the Library, and the Last Castle, the main system and device versions of the game with different game mechanics, enemies, items, levels, and graphics. Experience an amazing world brought to life through new graphics and magical adventures! Travel through five magical worlds filled with the mighty minions of Mizrabel! Complete hidden challenges and customize Mickey with classic costumes!