"Welcome to Daydream Oasis. Don't let the dreamy name fool you though; mess up in here and you might wind up taking a permanent Nap!" - Marshall's Introduction to Daydream Oasis
Daydream Oasis is a Dream State zone. It is accessible through a portal in the southeast corner of Funkeystown next to the Dirigible Dock, through a portal in Laputa Station in the north, and through a portal in the southeast of Nightmare Rift. It is home to four tribes of Funkeys: Lucky, Dyer, Berger, and Tank. It's villain is Dali .
Daydream Oasis is a colorful zone with rainbow skies and seas, and an overall pleasent and welcoming atmosphere. Like Nightmare Rift and Paradox Green, this zone is split four different sections themed around their housing Funkey tribes.
A dock against a sea of multiple rainbow colors, home to the Tank. A large submarine (funkmarine) sits in the water. This area has some references to famous optical illusions including one of the Necker Cube illusions and the Penrose stairs among other abstract visuals.
A place up in the mountain tops with large, floating islands of solid cloud and rainbow bridges connecting them to each other. Strange but harmless creatures can be seen jumping and flying round this area. There is also a noticeably large structure in the center made entirely of giant crystals used as the game room for the Lucky.
The home of the Dyer tribe. This area is made almost entirely of mushrooms, many of which have been made into houses. The place is known for being not very sanitary with colorful dirt and flowing rivers making up the ground, and the Funkeys there "never washing".
The Great Dairy DivideEdit
A land made entirely of cookies, pastries, candy, and cheese. The ground is made of cake frosting and there are lakes of milk. The few plants there appear to be mint leaves. This section is separated from others by a large, chocolate river. This area is home to the Berger where they apparently run cheese-crafting businesses.
The music for Nightmare Rift is shown below.