Timmy the Dream Hunter is an interactive storybook which follows the kid Timmy and how he manages overcome his fear of the night. Each of the 15 panels is introduced with a narration and afterwards the player can click on items or persons to trigger animations. Each panel also holds a simple hidden mini game, e.g. matching the arm positions of a goblin or drawing a star constellation by clicking on spots in the given order.

A monster keeps appearing in Timmy's dreams, and chasing him. Timmy asks for help from his dad, and Dad sets up a trap for Timmy to catch the monster. Timmy catches the monster that night, and the monster is embarrassed. He introduces himself as Timms, and explains that he was chasing Timmy because he was afraid he would be forgotten by Timmy and disappear, since he can't go to other people's dreams. Timmy requests Timms that from now on, he should only show him part of his body in each dream so Timmy can slowly get used to him and see he is not so scary. The next morning, Timmy discovers small blue marks on the trap which belong to Timms.