It is the sixth game in the Dizzy series, and the fourth adventure-based Dizzy title. The story, set in a fantasy world called Magicland, follows on from the events of Fantasy World Dizzy, the previous adventure title. In Magicland Dizzy the player controls Dizzy, an egg-shaped character, who is trying to save six of his friends who have been placed under spells by the Evil Wizard Zaks.
The game was the first Dizzy game not to be developed entirely by Dizzy's creators, the Oliver Twins. Instead, whilst they were focusing on other projects, Magicland Dizzy was designed by Neal Vincent and coded by external developer Big Red Software. The Oliver Twins retained design-approval oversight.