The story opens with the 'Toads visiting the Gyachung-La fortress in northern Tibet, where the Psicone Corporation is demoing their new virtual reality game system, TRIPS. Suddenly, a pig lackey working for the evil Dark Queen and her partner Silas Volkmire, leaps out of the system and kidnaps Michiko Tashoku (daughter of Psicone Corporation's CEO, Yuriko Tashoku) and Zitz. Now the remaining Battletoads must make chase into the Gamescape, rescue the two captives, and stop Volkmire and the Dark Queen from fulfilling their plans to control the world.

The game was ported in 1994 to the Sega Master System by Syrox Developments and was going to be published in Europe by Virgin Interactive with a stated July 1994 launch date. However, the European release was pulled out in the last moment by unknown reasons and with the game already having been reviewed by video game press in the United Kingdom. The game was finally released by Tectoy in Brazil in 1996. It is a barely finished albeit unpolished build of the game with some stages not having music and minor glitches, some including a choppy scrolling floor in the bonus stages and invisible obstacles in the turbo tunnel.