The Canyon immediately follows the events of The Glacial Peak. The group at the base of the peak consisting of Lucas, the Pokemon Trainer, Marth, Ike, and the Ice Climbers, are overrun by Shadow Bugs released from the Battleship Halberd flying above them. From a cliff above, Mario, Pit, Link, Yoshi, and Kirby see their predicament and jump downwards to attack the incoming members of the Subspace Army.
When the player begins this level, he can only choose to play as Mario, Link, Pit, Yoshi, or Kirby not the Pokemon Trainer, Lucas, Marth, Ike, or the Ice Climbers, of whom, were under attack. When the player begins, he must fight Primids, Feyeshes, Armights, Puppits, Fire Primids, Glires, Big Primids, Boom Primids and a Roturret on two sides of the stationary stage. Two platforms, one on each side, are above the main floor. The player can also stand on the cliffs at the top, with the help of the platforms. There is a large gap in the middle of the stage, hence the name "The Canyon". A group of red dots on the top of the screen on the left, has a number of red dots like in the battles of The Battlefield Fortress, Outside the Ancient Ruins, and the later, Subspace Bomb Factory 2 that deplete when an enemy is defeated. When all enemies are defeated, the level is complete. You do not need to worry if a Glire is rolling on a side opposite the side you are on, for Glires are defeated, or have escaped, depleting the red dots on the side of the screen.
- When the five characters jump off the cliff, and the battle with enemies- Battlefield plays.