The game starts out with Rayman getting attacked by the Rabbids and becoming one of their prisoners. Rayman is then brought to agony jail, but with the help of Murfy, He gets his hands back (which the the Rabbids took away to prevent his escape) and escapes the jail. Rayman goes to a small village and meets Ly the fairy, who explains to Rayman that the Rabbids were once a cuddily and cute race, but have since changed after they were mistreated. Now, the Rabbids have come out of the ground and are hungry for revenge.