All the well-known characters of the series will appear in a typical, humorous story created especially for the game: the magician Zebedee, the shaggy dog Dougal, Florence the adorable girl, Ermintrude, the pink cow with red spots, and many more. On Friendship Day, Zebedee promises Dougal a valuable gift if he is able to help everyone in the village.

The world of the “The Magic Roundabout” is brought to life in a number of mini-games and bonus missions with lovingly designed graphics. The game makes creative use of the different platforms' unique controls: for example, players control the flight of a paper plane by blowing into the microphone of the Nintendo DS, or uncover hidden objects by "shaking" the mouse cursor on the PC, or the Wii Remote in the Wii version.