The Lake occurs after Donkey Kong is turned into a Trophy, and Bowser walks away with the trophy. Diddy Kong is jumping through the jungle and lands by a vast lake. He sees a crashed Arwing (the same one shot down by the Battleship Halberd in Sea of Clouds) and goes to look at it. The Lake then vibrates as Rayquaza rises from the lake and threatens Diddy Kong. Diddy, however, has violated Rayquaza's territory, the legendary Pokemon wants him to pay for it. Rayquaza engulfs the crashed Arwing in flames with a powerful energy blast. Grabbing Diddy, Rayquaza prepares to finish off the monkey, when Fox jumps out of his Arwing and uses Fox Illusion special move to liberate Diddy. Landing, the game shows his name, and then he gestures to help Diddy fight Rayquaza. After Rayquaza is defeated, Fox attempts to leave but Diddy tries to appeal to him with no success. Diddy just decides to drag Fox away with him. After completing the level, another cutscene plays showing the real Bowser appearing and attempts to use the Dark Cannon to turn the new teammates into trophies. Diddy Kong prepares to fight Bowser, but Fox grabs him and dashes away. After this, Fox will join your team.
When the player begins this level, he must choose to play as either Fox or Diddy Kong. After he chooses his character, he must fight Rayquaza. Items will drop for the player to use to defeat Rayquaza. After Rayquaza is defeated, the player can collect the items he dropped whether it is some Stickers or Trophies. After that, the player's character will appear on the screen. The player must move to the right to enter a Dark Door. Inside the area, are many Goombas, a Koopa Paratroopa, and Hammer Bros. The player can defeat them for items, then jump beneath the path and enter a Light Door. Inside this door is an area with Goombas, Hammer Bros. and Auroros. Near the Auroros is an Orange Cube. The player should collect the Orange Cube's collectible and then defeat the enemies for items. After that, run to the right to find a large gap with an arrow pointing downwards. Fall down through the area. While you fall, there will be Red Koopa Paratroopas flying. When on safe ground, run to the right and enter a Dark Door. The player will find himself in a completely dark area. There is no switch around. So, to get light, go to the left of the door, jump and attack. You should hit a bomb block that explodes all the other blocks, revealing a light area with platforms the player must climb. As the player gets higher, he will climb a ladder and find some more platforms this time with Hammer Bros. on them. After the Hammer Bros. are defeated, the player can continue climbing. He will reach an area with an Auroros, a Borboras (the only Borboras in the level) and two Giant Goombas. A Giant Goomba is on each side of the gap with the platforms the player has just climbed. After the enemies are defeated, the player should go back to the left side of the gap and enter a Light Door. Inside the next area, the player should continue moving on to find a Towtow. When the Towtow is defeated, the player will find/hear another one. After that Towtow is defeated, the player will continue moving on to find a block wall. Destroy the blocks and the player will find two Auroros. After they are defeated, most likely, the Towtow near the Auroros will wake up. After it is defeated, the player can enter the Dark Door. Inside here, is quite tricky so follow the instructions carefully. The player will come across Mites, a Bucculus and two Doors- one Red, one Light. Do not go inside the Red Door, as for it is filled with damaging flames. Instead go past the two Doors to find more Bucculuses and a part with a Turquoise Cube. The Turquoise Cube will give the player a Stock Ball. Now the player should enter the Light Door he has just passed. Inside is an area looking exactly the same, but an evening sky and a Dark Door. There's a Red Door too, but that one has flames.Once again, ignore the Doors and go up a path like the one in the previous door. In the part that had the Turquoise Cube, is a forced battle against Goombas and Giant Goomba. After they are defeated a bomb block will appear. Hit it and the earth will shake. Now enter the Dark Door and go up the path with the Bucculuses. However, do not go to the part with the Turquoise Cube. Between the last two Bucculuses of the area is a dirt path with a Switch. Hit the switch and go to the Red Door. Enter it. Instead of having flames like before, the player will find himself falling to the ground. Now the player must enter the Dark Door on the ground. Inside is an area with a Towtow. After the Towtow is defeated, a red Door appears. Here, is very different from the other parts of the level. The player will find himself on a raft moving on a river. Goombas, Red Koopa Paratroopas, Hammer Bros. Water Jyks, Bullet Bills and Giant Goombas in that order will appear. Bullet Bills, Water Jyks and Koopa Paratroopas will fly over the raft. Hammer Bros. appear on a platform with a Trackball, and Goombas and Giant Goombas will fall on the raft. During the ride, the player will find a Door in midair. Inside is an area with two Trackballs and two Cubes. The player should collect the collectibles they contain and exit out. After the player gets out of the raft area, he will be warped into another part of the level. Here, there are Hammer Bros. Goombas, and Koopa Paratroopas. Near the end is a Barrel Cannon (the only Barrel Cannon in the level). It will shoot the player quite awkwardly (not like how other Barrel Cannons shoot the player) into a hole with blocks. Now, the player must fight a False Bowser. Items will fall to help the player defeat the false Bowser. After he is defeated, the level is complete and Fox will join your team.
- When Fox appears- Space Armada plays.
- During the battle against Rayquaza- Victory Road plays.
- During the the sections before the raft area- Bramble Blast plays.
- The Raft Area- Battle for Storm Hill plays.
- The area after the raft area with the Barrel Cannon- King K. Rool/ Ship Deck 2 plays.
- During the False Bowser battle- Airship Theme (Super Mario Bros. 3) plays.
- False Characters