|"Mafia look at little child. Mafia see loser."|
"One day, tunnel suddenly leads to another dimension! This too weird for Mafia."
The Dream World is a type of Time Rift. It is a strange place with brightly colored blocks, cookies and wedges suspended in an abyss where some monsters can appear as well. These objects are arranged in such a way as to provide a path for Hat Kid to traverse, using all the platforming skills she has honed. Along the way, lanterns mark checkpoints. At the end of the path lies a Time Piece, which ends the level. When falling or dying, the Hat Kid teleports to the last Checkpoint. The Dream World can be entered by touching a Blue Time Rift, floating glowing orbs, found in previously played acts.The parkour itself can be pretty challenging, but just a little harder than usual levels.
The Dream World appears to be underwater though Hat Kid jumps and falls through it like air. In the distance, the silhouettes of ancient clock towers can be seen. Bubbles float upward around her in this place, and if she's lucky, she may catch a glimpse of the dream whale swimming about.