On a dark and stormy night in Donkey Kong Island, Diddy Kong, Donkey Kong's nephew has taken the weighty responsibility of guarding DK's precious banana hoard for one night, as a part of his "hero training". DK entrusts Diddy with protecting the hoard until midnight, when he would be relieved, while DK himself goes to sleep as he is tired.

Everything seems to go smoothly in the hoard until Diddy hears some noises. Diddy hears some voices outside and gets scared, asking who's there. King K. Rool, who had commanded his Kremling minions to steal the bananas. Two ropes drop from above and suddenly two Kritters appear. Diddy cartwheels them both easily, but then a Krusha (Klump in the instruction booklet) comes in as backup. As Diddy is not strong enough to defeat Krusha by himself, he is overpowered and defeated by the Kremling. The lizars seal Diddy inside a barrel and then throw it in the bushes. Donkey's grandfather, Cranky Kong, rushes inside the treehouse to tell Donkey Kong to wake up so he may tell him what happened. He then tells Donkey to check his Banana Cave. Donkey Kong is infuriated, exclaiming that the Kremlings will pay for stealing his banana hoard and kidnapping his little buddy. Donkey goes on to say that he will hunt every corner of the island for his bananas back.