They are the leaders of the Peach Mountain Shoguns, which was a part of a larger group of villains known as the Flake Gang. Dancin' and Lily's goal is to turn all of Japan into a beautiful stage so they would be big stars. They start by turning Oedo Castle into a stage, endangering the Lord and Princess. Goemon and Ebisumaru meet Baron one of the four generals of the Peach Mountains and are able to defeat King Robot Congo and obtain Baron's Miracle Item. They then rescue the leaders of Oedo and the Lord gives Goemon a gate pass.
Goemon and Ebisumaru then reach the wise man's house and it explodes leaving behind the conch that summons Impact. They encounter Baron and assume he was responsible for the destruction and use Impact to defeat his giant robot.
After mind controlling the son of the Dragon God, Koryuta, into kidnapping children, Goemon, Ebisumaru, and Yae enter Ghost Toys Castle after freeing Koryuta from his mind control state and defeat the boss robot. After defeating him, Colon, the man responsible for the kidnappings, drops his miracle item. Spring Breeze Dancin' reveals himself to Goemon and his allies and calls Goemon Fernandez.
Goemon and allies head to the Chu-Goku Region after Colon lets it slip he was going there and Kyushu was already a stage. The bridge leading to Kyushu was sealed by a barrier and head to Festival Temple along with the robot ninja Sasuke and destroy the robot protecting the barrier. After snatching Sharon's Miracle Item, Kitty Lily reveals herself to the group.
Goemon and allies head to Kyushu and Omitsu, Goemon's love interest heads to Kyushu to deliver some dumplings. The Peach Mountains create a black hole in the sky and suck Kyushu into outer space.
After that, Goemon and allies head to Festival Village and learn of the purpose of the Miracle Items. When all four are gathered, they would be able to go into outer space. They go to the Gourmand Submarine , which was hording food stolen from the festival village. They encounter Sharon. Sharon tells the group she lost her Item in Zazen town. Lily and Dancin' appear together and tell Sharn to activate the self destruct. Goemon and allies escape with Impact and destroy Sharon's giant mermaid robot.
Goemon and allies are able to find the last Miracle Item and head to outer space and get to Kyushu. The Wise Man turns out to be alive and is revealed to be the one who made the machines for the Peach Mountains in exchange for car magazines, though he quickly changed his story. After learning about the destruction of his house, an enraged Wise Man upgrades the groups weapons to get them into the final dungeon. Dancin' and Lily confront them with the song Gorgeous My Stage and activate a self destruct mechanism and make there escape. Goemon summons Impact and attacks their battleship, Balberra. They succeed in destroying Balberra, but Dancin' and Lily get into their ultimate battle robot, D'etoile, The Fairy of Love And Dreams, who resembles a large toy soldier with a serpent-like lower half. They engage in one final battle with the heroes, only to face defeat. Dancin' mocks Goemon, calling him Fernandez once more, but Impact blasts Dancin's robot's head off, launching Dancin' and Lily further into space until D'etoile's head explodes, killing the two.
Goemon and allies return to Japan, seeing Kyushu return. The girls from Kyushu run towards Goemon and allies, who believe the girls are admiring them and want their autographs. However, it turns out the girls liked Spring Breeze Dancin' and Kitty Lily and are enraged that Goemon killed them, shocking Goemon and his allies.