First, the player gets dropped off into the water, where Radley comes in a giant submarine. Touching the submarine will make the player lose a life, no matter if they use the Swim Boost or not.
Radley will shoot Chocolate Drizzle bottles at the player, in which they must dodge them to survive. They must attempt to swim away from him. There will also be numerous underwater baddies.
If the player reaches a Cracker Block barrier, they should wait for Radley to come, and then make him shoot a Chocolate Drizzle bottle at it. That would make the Cracker Blocks explode, and then the player can swim past the barrier.
If the player finally manages to escape Radley, they will have to climb out of the water and enter the next area, where there is a checkpoint.
After the player passes the checkpoint area, they "save" Alberto and Penny. The cage will instead fly up to the ceiling, and then Radley Madish will begin laughing. Radley Madish will rise out of the water in his now flying submarine. He has five lives.
The player cannot reach him, as he rises too high. He will return to his normal position in the air once the player stands still. Radley will shoot Chocolate Drizzle bottles at the player, and they must hit them to destroy them. Pararadishes will endlessly come from the air.
After a couple of Chocolate Drizzle bottles, Radley will occasionally shoot a Banana Drizzle bottle. If the player successfully hits it, it will fly back to Radley, exploding in front of his face. The submarine will fall to the ground, and Radley will look dazed. There is a matter of seconds before he flies back into the sky, so the player must hit him while he's damaged.
Radley will then lose a life. He will now temporarily shoot ice pellets that will freeze the player if they land on them. If the player hits him again, he will ram his submarine into the ceiling, making Creameo boulders fall down temporarily.
At his last life, he will summon his SundaeSaurus army, as a SundaeSaurus will pop up from each end of the arena. If the player finally manages to defeat Radley Madish, Radley and his submarine will fall down defeated, and all of the baddies will disappear.
The player can now rescue Penny and Alberto.
There is an end screen where all the characters that the player saved will run on the docks of Calypso Island. After they view the parade-like run, an end screen will appear, which reads: THE END! Thanks for Playing! and displays all the characters that the player saved standing altogether.
If the player saves someone else after the end screen appears, like Xolo, and would like that character to be in the end screen, then they should simply face Radley Madish again, and the end screen will be updated.
The following baddies are introduced in this area:
- Scuba Radish
- Radley Madish
- While battling Radley in Papa Louie 2, there was no checkpoint to resume gameplay from. However, one will appear after completing the swimming section of the battle.
- Radley shoots Chocolate and Banana bottle rockets now instead of BBQ and Mustard.
- To get past the Cracker Blocks while swimming in the water, Radley will move his vehicle forward to break through them or shoot chocolate bottles (which act like cherry mines).
- The lowest amount of characters you can get on the end card is 11. The highest is 27 (28 if you saved Xolo).