In SpongeBob's dream, the player is in a race. First, the player has to complete a lap on a race course dotted with enemies, avoiding tires, oil cans and ferocious cones. Then, in his nightmare, the player has to try to navigate and get out of the Jellyship, by sneaking past the Alien Jellyfish Guards so the player can get the net launcher from Gary, which allows the player to find 3 keys to open the door and rescue the player's friends who are locked up in it.
In Patrick's dream, the player takes place in Downtown Bikini Bottom. First, the player has to defeat the Door-to-Door Salesmen, Dental Hygienists, and Personal Trainers in Bikini Bottom. Then, the player has to shoot the Flying Clowns and battle a Bigger Clown, high in the skies. Lastly, the player has to navigate through Patrick's house without his superpowers (instead, with a handheld vaccum equipped) and defeat the Dreaded Patrick.
In Plankton's dream, the player takes place in Bikini Bottom. First, the player has to destroy the Buildings, Homes, Krusty Krab, Barg 'N Mart, and Krabzilla as a giant 1000-foot tall monster. Finally, the player has to get themself with the other plankton with the player, out of a Sperm Whale. The other plankton will be knocked out after an enemy kills them. But they will get up after a short while. The player must navigate their way out of the whale by defeating Fishbones, Guitarfish, Skitters, and Bonepits.
Evil Tires - They are common enemies in SpongeBob's good dream.
Major Tires - Bigger than the Evil Tire, Major Treads are tougher. There is another variety called a Monster Tire.
Oil Cans - These enemies shoot out oil.
Giant Oil Cans - Bigger than the Oil Cans, Oil Drums are tougher. There is a bigger one called an Oil Vat. Take out his servants and then defeat him.
Caution Cones* - These enemies are undefeatable.
Jellyfish - There are two types of Alien Jellyfish. The Pink ones and the Big Green ones, The Pink ones are undefeatable unless SpongeBob has the net launcher. The net launcher has no effect on the big green jellyfish however.
Door to Door Salesmen - These Starfish will throw clothes at you.
Dental Hygienists - This Starfish will throw toothpaste at you.
Bodybuilders - There are three types. One that doesn't throw dumbbells, one that throws dumbbells and one is a Buff Trainer.
Clowns - There are two clowns. One of them that flies around and shoot balls at you and one acts as a boss after the fifth swarm.
Soap Scum* (unless Patrick has the Soap Box) - This enemy is only defeatable when Patrick has the Soapbox.
Lint Worm - These are common enemies in Patrick's nightmare.
Plungers* - These enemies are undefeatable.
Dirty Clothes (Filthy Pile) - This pile of dirty clothes will shoot at Patrick.
Dreaded Patrick - The ruler of Garbageland. Keep shooting him and avoiding the dirt until he falls down and faints.
Buildings - They are common enemies in Plankton's good dream.
Helicopters - These enemies can only be defeated by Plankton's ultra-dense ocular disintegration ray.
Houses - There are three houses: SpongeBob's, Squidward's, and Patrick's. They only take one hit like a Building.
Krusty Krab - Same as the other buildings.
Krabzilla - Mr. Krabs is a giant monster. Kill him to save time or just ignore him.
Tank - These enemies can shoot Plankton. Destroy them just by walking into them.
Barg 'N Mart - Same as Krusty Krab and the other houses.
Skelefish - They are Fishbones in the whale's mouth. Get the other Plankton to kill them along your way. There are smaller versions of them.
Bone Pile - If you don't destroy the bone pile, it'll summon small Skelefish. Kill it to prevent the enemies from appearing.
Shark Ray - They are based on Guitarfish in Plankton's nightmare.
Skitters - They are Sea Spiders in Plankton's nightmare.
Note: The * indicates the enemy you cannot kill or get rid of.
In Patrick's good dream, most of the enemies are starfish.
Larry the Lobster appears in Patrick's good dream in the Downtown Bikini Bottom level, but has no lines.