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Professor T. Bird and the three Battletoads, Rash, Zitz, and Pimple, are escorting Princess Angelica to her home planet using their spacecraft, the Vulture, for her to meet her father, the Terran Emperor. When Pimple and Angelica decide to take a leisurely trip on Pimple's flying car, they are ambushed and captured by the Dark Queen's ship, the Gargantua. The Dark Queen and her minions have been hiding in the dark spaces between the stars following their loss to the Galactic Corporation in the battle of Canis Major. Pimple then sends out a distress signal to the Vulture, alerting Professor T. Bird, Rash, and Zitz. Learning that the Gargantua is hidden beneath the surface of a nearby planet called Ragnarok's World, Professor T. Bird flies Rash and Zitz there in the Vulture to rescue them. Between levels, the toads receive briefing comments from Professor T. Bird, along with teasing from the Dark Queen. The professor drops the toads to the first level, Ragnarok Canyon, the surface of the planet guarded by axe-wielding Psyko-Pigs and Dragons that the player can fly with if taken out first; its boss is the Tall Walker, which throws boulders the heroes must throw back at it while avoiding its lasers. The toads then enter the world by descending through a downward-vertical-scrolling Impact Crater, the second level named Wookie Hole, where they face threats of ravens that can cut off the toads' Turbo Cable, Retro Blasters that pop out of the wall and shoot electrical bolts, Electro Zappers that form a line of 2,000 volts of energy, and plants named Saturn Toadtraps that eat toads. Ride levels include the third stage, the Turbo Tunnel, where the players dodges stone walls while riding on a Speed Bike and having to use ramps to get across long gaps; the fifth level, Surf City, where the player bounces on water surfaces on a "Space Board" while dodging logs, whirlpools, mines, and spiked balls; the seventh stage, Volkmire's Inferno, where the 'toads fly on the Toad Plane in a fire-y environment going through Force Fields and dodging fireballs and rockets; and level eleven, the Clinger-Wringer, where the toads ride on the stage's titular unicycles while being chased by a hypnotic energy orb, named the Buzzball. All of them include a section of beat 'em up gameplay, with Surf City being the location a boss fight with Big Blag, the chief of the Dark Queen's rat army that can squash the Battletoads with his weighty blubber slam, and Buzzball also serving as Clinger-Wringer's boss.