Klonoa, a rabbit/cat-like Creature who lives in the dream land of Phantomile, comes across a mysterious ring while playing in the forest one day — upon grabbing it, he ends up meeting Huepow, an orb-like spirit who can go inside the ring's gem. The two quickly become close friends. Some time later, after having a nightmare involving a ship crashing into a nearby hill, Klonoa and Huepow awake when exactly that happens. When the two investigate, they find a mysterious, sinister man named Ghadius & learn of his plans: to use a mysterious Moon Pendant in order to revive the legendary Moon Kingdom and spread nightmares across Phantomile. He also intends to kidnap Lephise, a diva that is said to come from the legendary Moon Kingdom, to prevent her from singing the Song of Rebirth that would thwart his agenda.
