The Sunken Ship is a fairly large ship that has many ghost-related enemies in it. There is also points where Mario must dive into the water.
After escaping the Sea, Mario and his team venture into the Sunken Ship to find the next Star Piece. Mario eventually reaches a locked door that requires a password to get through. Mario enters the correct password "Pearls" and enters the room. However, Mario and his team soon fight a large blooper named King Calamari and defeat him in battle. Mario and his team head further into the Sunken Ship fight more enemies including ones called Bandana Red. Mario eventually reaches the captain of the ship named Jonathan Jones and challenges him to a fight for the Star Piece. Mario defeats Johnny and he honorably gives up his Star Piece. Mario and his team decide to head back to Seaside Town.