Lead designer Xavier Manzanares, speaking about the new combat, stated: "You can move in this area of movement the way you want; you can dash a Bob-omb, then you have it in your hand.

The calm is suddenly broken when hybrids of Rabbids and Lumas known as Sparks appear, pursued by a gigantic manta ray imbued with Darkmess, a shadowy corruptive substance.

Rabbid Peach is accidentally abducted by the manta while attempting to take a selfie; Mario and Beep-0 free her from a pocket dimension inside the creature with the help of the Sparks.

The team resolves to find Cursa's stronghold and defeat them, saving as many Sparks and corrupted planets as possible, while also searching for Rosalina, the missing guardian of the Lumas.

Together, they help the wardens of each world dispel the Darkmess infection while also battling Cursa's team of corrupted Rabbids, brainwashed minions of Bowser and the Spark Hunters – a trio of Rabbid-like villainesses that consist of Midnite, Bedrock and Daphne.

Rosalina gives the team a purified Darkmess source and helps them escape before Cursa regains control; from the source, they learn that Cursa was originally a surviving part of the Megabug anomaly, which was cast out into space and later gained sentience by after being mutated by intergalactic debris, desiring to feed upon the life energies of the galaxy to adapt to its new form.

The team reaches Cursa's stronghold and destroys its protective shield with one of the wardens' inventions, revealing the Comet Observatory.

After a protracted battle, Cursa releases both Rosalina and the energy of the absorbed Sparks, but makes one last-ditch effort to defeat them after assuming an independent form.

Taking place after defeating Daphne and before reaching Cursa's stronghold, the heroes travel to the musical Melodic Gardens after discovering that it has gone silent.

Later, the heroes find Allegra's friend Dorrie, a dinosaur who is the source of the Melodic Gardens' biophonies, that are a part of the planet, imprisoned in a cage.

With the Melodic Gardens now back to normal, the heroes can now leave to confront Cursa as Allegra wishes them luck in their adventure.

They learn that the studio is owned by the Phantom, a transfigured Rabbid who served as the third major boss encounter of the first game.

Beep-0 assumes that he is seeking revenge for his previous defeat, but the Phantom claims that he has reformed, though Beep-0 and Rayman remain unconvinced.

Once all of it is gone, The Phantom invites them to his control room, which is where the warp portal that brought the group to the studio is located, only to find it broken.

[11] When asked about why Rosalina wasn't made playable, Soliani cited her tall height, which would have caused technical issues, as well as her being "too powerful" as the key factors.

[13] These three expansions, according to a Twitter post, include The Tower of Doooom, a mid-game adventure titled The Last Spark Hunter featuring a villain named Kanya in an enchanted forest–like planet called the Melodic Gardens, and Rayman in the Phantom Show.