The main levels are loosely based on various classic Bugs Bunny cartoons, such as "Duck! Rabbit, Duck!", "Bully for Bugs", "Knighty Knight Bugs" and many more, including a bonus level which is accessed by collecting Bonus Stars in the main levels, only in the Genesis version. Each level has a set objective for Bugs to complete, such as turning the signs from Rabbit Season to Duck Season in "Duck! Rabbit, Duck!", or collecting trap parts to pull off on the bull in "Bully for Bugs".

One night, Bugs Bunny is fast asleep in his bed as he starts to drift off into a dream. In his dream, he sees Yosemite Sam experimenting on a "giant carrot serum", but before he could take action, Sam orders Gossamer to fetch the rabbit's brain for his robot, prompting chase. Bugs soon comes across a "Televisor" and gets transported to many of his times from older cartoons, which he must complete several objectives in each level.

After finishing all 4 levels, Bugs attempts to escape the haunted castle and defeat both Gossamer and Yosemite Sam in the laboratory. He eventually succeeds and exits the castle to escape inside a rocket ship. Bugs soon found himself stranded in outer space after the launch, as he spots a nearby space scooter which he uses to travel across the galaxy and face a new threat: Marvin the Martian and his trusty pet dog K-9. Upon reaching Marvin's home planet, Mars, Bugs comes across some levers and switches them around, foiling Marvin's plans, and upon leaving back to Earth, he tosses the dynamite stick he previously rescued over to Marvin, resulting in the destruction of Mars itself. Eventually, Bugs wakes up back in his bed, only to find a giant carrot sitting right in front of him, much to his shock.