Barbie as Princess Bride introduces the player to a young Princess Barbie and her childhood friend, Prince Ken. The 2 grow up close together, fully intending to wed the day they come of age. One day, Prince Ken is called out to sea on a long journey but promises the princess that he will return to marry her one day.

Years pass and Princess Barbie receives word from a Butterfly Fairy that Ken is finally on his way back home. Ecstatic, Princess Barbie hurries to make wedding preparations. The Butterfly Fairy gives Barbie a magic mirror with 12 jewels around it. The 12 jewels correspond to 12 parts of the game. As Barbie completes more of the activities, the image of her Prince in the mirror becomes more clear.