Barbie takes to the skies on a flying carpet in her third game for the color handheld. An evil genie named Kardal has stolen the magic lamps from four of Barbie's friends. As Barbie, players attempt to recover the lamps by visiting five mystical cities: Crystal City, Magical Forest, City of Clouds, Dragon Playground, and Hidden Atlantis. Barbie can talk to friends, earn magic rings by completing activities, and navigate mazes to locate one of the missing lamps.
Each activity is a mini-game played on one of three difficulty levels. By playing an activity on a harder setting, players can unlock new carpets or the ability to cast spells. All of the side-scrolling cities offer shortcuts to find using Barbie's special powers, so levels can be replayed a different way each time. Once Barbie has found all four lamps, she'll need to confront Kardal from inside his palace.
Activities alternate between action sequences and puzzles. "Field of Flowers" involves watering flowers from a cloud positioned high above a field, while "Pegasus Flight School" has players flying the winged horse onto a series of clouds. "Twin Dragon Match" is patterned after Memory, where the object is to form matches by flipping over two of the same cards. Each game of Twin Dragon Match is played with 20 cards spread across four rows.
"Marine Mix-Up" is a fishing game in which players attempt to catch colored fish in a specific order using a net. The final game, "Magic Rainbow Potion," involves rotating a series of colored crystals so they all connect together. Completing the game creates the potion needed to defeat Kardal. Each activity can be accessed directly by choosing the Activity Mode, while progress during the Mission Mode can be resumed via passwords.