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This (Unnamed) Dream World is where the extra stage of Lotus Land Story is set. At an unknown location, all details of this place are unknown, save for the fact that Mugetsu created this world and that she lives there with her older sister, Gengetsu. It is merely referred to as Mugetsu's 'world' (世界 Sekai). It is unknown if this is related to the Fantasy World of Lotus Land Story or the World of Fantasies in Story of Eastern Wonderland's, or if they are the same, along with the Dream World in Legacy of Lunatic Kingdom. The kanji in these worlds' name are different, and that alone could suggest that they're different worlds. A noticeable difference between this unnamed world and the other worlds is that the scenery is purple with an odd number of stars and having what appears to be black flooring.
Reimu Hakurei and Marisa Kirisame travel through here without reason. They are attacked by bizarre stage enemies and half way though they encounter a Mysterious Orb. Towards the end, they encounter Mugetsu. Reimu says to her that she smells "evil energy", much to Mugetsu's confusion. With that, the two fight, and Mugetsu is defeated, leading to Gengetsu coming along. She fights the heroine, but is defeated. She wonders why the heroines came, but they reveal they had no reason.