Sonic the Hedgehog returns in this Wii-exclusive title that places him in the page of an Arabian Nights themed storybook.

The pages from this story are being erased by a villain known as Erazor Djinn, and Sonic must use his super-speed to travel through worlds filled with dinosaurs, pirate ships, deserts and ruins in an attempt to restore the story's pages.

Players control Sonic via the Wiimote, as he is continually running forward, allowing him to twist, jump and launch himself at his enemies using the system's controls. The game is more linear than the previous 3D adventures, hearkening back to the more straightforward "reach the goal" mechanics of the earlier side-scrolling titles. For gameplay, the wiimote is held sideways like a regular controller. By tilting left or right, Sonic follows the direction. Certain movements and buttons allow Sonic to slow down or perform moves. Similar to Sonic the Hedgehog (2006), Sonic can acquire more than 100 new skills, and even combine them, gained along with experience. Before each stage, players select the desired skills for the mission.

There are 3 game modes: Adventure (the main game with 8 stages), Party and Special Book. In Special Book, there are more than 200 extras to be unlocked when Sonic completes specific goals. The Party mode supports up to 4 players on a game board, similar to Sonic Shuffle. The gameplay itself consists of 40 mini-games, each with different controls for the wiimote.