Disney Town is a world that appears in Kingdom Hearts Birth by Sleep. Minnie Mouse, Huey, Dewey, and Louie, Chip and Dale, Horace Horsecollar, Daisy Duck, Pluto, and a transformed Pete by the names of Captain Justice and Captain Dark reside there, during the event of Kingdom Hearts Birth by Sleep.
The town contains a multitude of mini-games: a racing game called Rumble Racing, a rhythm game called Ice Cream Beat, where the player will have to stack ice cream to a beat, and a ball game called Fruitball, where the player shoots balls shaped like fruits towards a goal.
At this time, a festival called the "Dream Festival" is being held by Queen Minnie. Many events are held at this festival, and whoever gains the most popularity votes becomes awarded with the Million Dreams Award.
After being handed a Disney Town Passport, Terra stops by at Disney Town. Just then, he sees a group of Unversed on the racing course of "Rumble Racing". He attempts to go after them only to almost be run over by Pete in his vehicle, posing as "Captain Dark". Luckily, Queen Minnie alerts Terra just in time for him to avoid it. The queen, Chip and Dale suggest to him to participate in the race as a means to stop the Unversed without breaking the rules.
Participating in the race allows Terra to discover that he may not need to give in to the darkness in order to achieve his goals, that following the rules may give him the same accomplishment. He also receives votes from Chip and Dale.
If Terra receives the Million Dreams Award, he is presented the "Rockin' Crunch Ice Cream".
Ventus is immediately greeted by Pete, posing as Captain Justice. He tells him of the Dream Festival, and then becomes distracted by Huey, Dewey, and Louie, who are trying unsuccessfully to make ice-cream with a machine left by Scrooge McDuck. After Pete's multiple failed attempts to fix it, Ven offers to try. After a few keystrokes, he finally sets it right.
If Ven receives the Million Dreams Award, he is presented with the "Double Crunch Ice Cream".
Aqua is greeted by Pete posing as Captain Justice, just as she arrives in town. Horace Horsecollar comes yelling for help after the Unversed infest the "Fruitball" Area. Aqua volunteers to help after Pete runs away in fear of battling monsters. After she defeats the Unversed, Minnie appears to thank her.
Horace introduces her as the queen and Aqua bows to show her respect, but she tells her to not be so formal. After Queen Minnie explains the Dream Festival and how Pete has been attempting to win others' votes, Horace votes Aqua as his hero. At the end of the festival Aqua wins the Million dreams Award and is presented with the "Royalberry Ice Cream".
While Aqua is accepting her award Pete rushes on stage claiming that he should be the winner. Queen Minnie gets angry and banishes him to another dimension. Maleficent's voice can be heard offering to help him escape if he will become her ally, he agrees and is seen walking through a portal she created.
At the end of the game Huey, Dewey, and Louie are competing in a Race in the Rumble Race course where Huey is the victor. Observing them is Queen Minnie, Pluto, Horace Horsecollar, Chip, and Dale.
In Disney Town, Pete dresses up as Captain Justice and Captain Dark in a plot to win the Million Dreams Award.
- Scrooge giving away passports to Disney Town implies that this world is openly aware of the existence of other worlds, as Aqua, Ventus and Terra visit the Dream Festival without drawing attention due to not being anpromorphic animals like the natives.
- Even though the mini-game is called "Fruitball", a sign in Disney Town says "Fruit Scatter"; possibly a translation issue.
- The fact the underground human pinball machine has Captain Justice on the backround and is called "Pete's Rec Room" implies Pete built the machine to get popularity votes for the Million Dreams Award for providing entertainment using the moniker. Though given its impractical design, it seems Pete demolished and remodeled the proper stairway to the roof of the rooftop exit to the Raceway; which would have the opposite results due to the property damage.
- This world has one of the slowest timeflows in comparison to original worlds in the game series like Destiny Islands, Radiant Garden and Traverse Town, as Huey, Dewey, and Louie are still children despite the decade timeskip between ''Birth by Sleep'' and ''Kingdom Hearts'.