A kangaroo named Kao the Kangaroo was playing with his friends in his native Australia, when suddenly evil hunters appeared, put him in a cage, and took him away. They didn't know that Kao was quite proficient in the art of boxing, so freeing himself from the trap wasn't particularly hard. However, Kao finds himself far away from home, and must fight and hop his way back.
Though most levels in the game have Kao the Kangaroo running, jumping, and fighting enemies, some are similar to extreme sport challenges. These include snowboarding, jet skiing, pod racing, and other activities.