Dreamy Dozing Sands, much like Dozing Sands, is mainly a desert-based level located within Luigi's dreams.
After failing to get the Dream Stone from Antasma and Bowser, Mario, Luigi, Prince Dreambert, and Starlow come up with ideas on what to do next. Prince Dreambert then suggests Luigi to sleep on the spot where the Dream Stone was at and for Mario to access the dream world to find clues on where the Dream Stone was taken. Mario and Prince Dreambert then head into Dreamy Dozing Sands where they (along with Dreamy Luigi of course) run into the Dream Stone Soul. However, the Dream Stone Soul is far from cooperating with them and quickly flies away. Mario and the rest chase the soul around until Mario and Dreamy Luigi are forced to attack him. However, this only angers the Dream Stone Soul and he transforms into a large robot. Dreamy Luigi turns giant and he and Mario defeat the robot and the Dream Stone Soul turns back to normal. Excited from the fight, the Dream Stone Soul is happy to tell where the Dream Stone went but only to Dreamy Luigi. He tells Dreamy Luigi that the Dream Stone was taken to Mount Pajamaja and Mario and Prince Dreambert leave Dreamy Dozing Sands to go after the Dream Stone.