I. Hate. This. Mode.
You'd think the enhanced movement speed and ability to teleport would lend themselves rather well to speedrunning, but it and Shantae's habit of clinging to walls when you don't want her to quickly turn into a hindrance. It feels like most of the game doesn't want you to use these abilities.
Never the less, I will once again create a map detailing the locations of all the Dream Squids in spite of how most of them are easy to find (At one point I even accidentally collected one).

The first Dream Squid is located above a pair of Tinker Bats, next to a wooden platform with a vace on it.

There are two ways to collect this squid. You could:
A. Kill the monsters and use Ninja Vanish to teleport into the squid.
B. Progress right and platform back to the higher platform.

The second Dream Squid is located further ahead, once again floating in the air.

To collect this squid, you'll have no other choice than to use Ninja Vanish to teleport into it.

The first Dream Squid is located in a platforming section over a body of water, next to the stone wall of the higher platform.

Just jump into it to collect the squid.

The first Dream Squid is located on the floating house in the upper left.

To retrieve this Dream Squid, use your Ninja Wall Jump ability to climb up to the platform over the chain.


The second Dream Squid is located in the hidden area above the burning restaurant. Use either Ninja Vanish or Ninja Wall Jump to get into this section to collect the Dream Squid.


The final dream Squid is towards the end of the level, floating above a platform.

Use Ninja Vanish to teleport into it.

The first Dream Squid is located in the hallway at the lower right corner of the level, next to a floating platform that can take you up to it if you're bad with Ninja Vanish.



The second Dream Squid is located on the opposite side of the map across from the first.


The third one is located at the top right corner. Beginning from the left side, ride a series of floating platforms over to the right to collect this one.

The first Dream Squid is located in a vertical section at the right side of the level. You naturally go here to progress and you'll know it by its electrified bats.

Use Ninja Vanish or Wall Jump to climb up the right section and you'll find the platform with the Dream Squid on it.

The second Dream Squid is located at the other side of the level, hiding under a platform you once again need to progress.

Drop down through the platform to collect it.


For the final Dream Squid, climb up the left wall until you find a platform you can teleport onto using Ninja Vanish.

The last Dream Squid is at the top of this section.

Fortunately, due to Shantae's increased movement speed, you're already prepared for a section like this.

The first Dream Squid is located right before a jump towards the end of the first jumping section.

Just follow the trail of gems. It'll get you the Squid and guide you across.

The second Dream Squid is located in the second jumping section.

Once again, follow the gems.

The third is hovering above the track, right after a square of gems floating in the air.

You'll find the first Dream Squid floating high above a large pond of water between two towers.

To collect this Squid, you'll need to use Ninja Vanish to teleport into it.

The second Dream Squid is located above a plot of quicksand between a large ledge and a worm enemy.

Just jump in to collect it.

The final Dream Squid is located under a platform above another pit of quicksand.

Once again, jump in to collect it.

The first Dream Squid is found by going up the middle or right paths when you reach the triple fork. You'll find it above the platform in front of the fire shooter.


Further along, the second one is located at the top-right corner of a room with a pair of chains dangling from the ceiling.


The third and final Dream Squid is located at the stairway of fire shooters, hiding in the top-right corner again.

The first Dream Squid is located in the section beneath the first Harpy Archer.

To collect this one, head further right and then drop down onto the lower platform.

Use Ninja Vanish to jump between each platform. It's best to do this from the edge of the platform to reach the next unless your exiting this section; in which case, you'll over shoot the platform.

The second one is located in the next screen, floating above you after you completed the section with crumbling platforms.

Simply use Ninja Vanish to teleport into it.

The third and final Dream Squid is located in the lower corner of a section of the third screen.

Drop down to the right platform and jump or use Ninja Vanish to teleport to the Dream Squid.

The first Dream Squid is located after the first blimp platform, floating between two magic carpets.


The second Dream Squid is located before the second multi-platform blimp.


After a trio of mutli-platform blimps, the third and final Dream Squid is located in the balloon of a blimp platform.

The first Dream Squid is located in the first airship with a hidden room.

Inside, you'll find a drop with the Dream Squid at it's center.


The second Dream Squid is located in the airship with a bolt of energy beaming down on it.

Inside, you'll find a room with a laser moving back and forth.

Once you get the chance, teleport up to collect it.

Finally, the third Dream Squid is located on the next airship you can enter.

Inside, you'll find a wall of lasers seperating you from the collectable

Use Ninja Vanish to teleport to the other side of the wall.

The first Dream Squid is located in the hidden room in the first hallway.

Jump onto the platform with the vase and use Ninja Vanish to teleport up to the entrance.

The Dream Squid is inside this room.


The second Dream Squid is located in the hidden corner of the next large room. Head to the lower right and drop through the platforms.


From here, there are two ways to get the Dream Squid, an easy way and a fast way:
The first way is to jump into the water and swim under the platforms to the far right.

Climb up the wall and jump into the hole.

Use Ninja Vanish and Wall Jump to climb up to the next level.

From here, head left.
The second, fast way to do it is to climb up to this location:

Jump towards the center of the screen and use Ninja Vanish to teleport onto the platform.

The third, and final Dream Squid is located in the next large room. In the lower right corner is a room next to a pit of spikes.

The Dream Squid is hidden inside.

Just like in my other guides, I am going to leave a map of Hypno Castle detailing which door leads where and where to find all the Dream Squids.

Remember what I said earlier about levels not being designed around the new mechanics?
This stage is the king of that. If you want to get through this level quickly and easily, avoid using the new mechanics as much as possible. Outside of collecting the Dream Squids, play as if you're regular Shantae.

The first Dream Squid is located after the first platforming section, hovering above the bottomless pit.

You should be able to jump into it as you float across. If you miss that, you're only hope is the dreaded Ninja Vanish.

The second Dream Squid is located during the next platforming section at the end of the floating blocks.

Unfortunately, you'll need to jump into it and use Ninja Vanish to collect it.

The final Dream Squid is located on top of the exit at the end of the stage.

To get this one, you'll once again have to use Ninja Vanish to get up there.

Finally, a level designed around Ninja Mode.
Slight speed-running tip. You can use Ninja Vanish to teleport around the Tinkerbeasts, but this is a bit tricky, because you'll almost always end up in its hit-box.

The first Dream Squid here is located at the end of the hook section at the start of the stage. You'll see it right below the final hook.

To get this one, drop into it and use Ninja Vanish to avoid certain death. Or just drop into the lava and do all the platforming over again.

On the next screen, the second Dream Squid can be found floating in the ceiling above a moving platform.

Use Ninja Vanish to teleport into it and fall back onto the platform.

The final Dream Squid is located on the final screen, once again floating above a pit of lava after the Tinkerbeast.

Drop down and use Ninja Vanish to collect it.

After the section with rising pillars of spikes, you'll see the first Dream Squid next to the platform, floating just above the lava.

Drop down to collect it, and use wall jump or Ninja Vanish to get back onto the platform.

As you enter the next spike section, you'll see this one floating between two spike pillars thrusting down on you.

Use Ninja Vanish to collect this one.

The final Dream Squid is located at the end of the platforming section, floating in the air well above the walkway.

Use Ninja Vanish to teleport into it.

Congratulations! You have collect all of the Dream Squids and have thus completed your training into becoming a true ninja master! Now, get started on practicing your speedrun. The time on that is strict.