The game is set in the Kingdom of Toys. At the start of the game, the king greets the player's Mii, jealous of a magician who has 10 Pokémon, whereas the king only has one Pikachu. The player's Mii then leaves Castle Town via a hot-air balloon to collect wild Toy Pokémon. As the player befriends wild Toy Pokémon, their Adventurer Rank increases. As their Adventurer Rank increases, more items are available in the shop and the stages will feature more powerful Pokémon.