This level takes place in a metal platform reminiscent of an oil rig built into a volcano, with Kremlings that activate crushing platforms that can be used against them. The level's sprites and music are later reused in Little Tall Tall Island. Dragon Kremling is the boss in this level. Although the level takes place in a factory, the boss fight takes place inside a volcano. Mini-Neckys and Kritters appear as enemies in this level.
Kremling Dock is thematically similar to Panic Factory; the music is the same and the level's floor sprites are recolored from that level.
The level opens outside the factory with four sets of rotating pegs, numerous Banana Bunches and two Mini-Neckys. The first Banana Coin and the oil barrel are in this section. At the top of the first section, there are two falling peg boards located before the entrance to the dock. The second area features a long vertical climb with peg boards, made difficult by the Kritter throwing bombs at the top of the section. Several steel drums exist in this area, which can be broken using the bombs to collect the DK Coin and the second Banana Coin.
The third room consists of a corridor with a Kritter activating a crushing device using a switch. DK can use a different switch to activate the crusher above the Kritter and defeat it, effectively disabling the stage's hazards. The next portion of the area is a short vertical climb with steam jets blocking the player's way, as well as the fourth Banana Coin. There is then a second crusher operated by a Kritter in an inaccessible room, who can be defeated using a switch next to the gateway to the next room. A switch to the left of the second crusher is needed to open the door to the fourth room.
The final room before the level's boss starts off with the final KONG Panel found above a bottomless pit. There is then a crusher next to a narrow corridor with a crate and two Kritters, who can be defeated by luring them out of the corridor beneath the peg board next to the crusher. There is a row of spikes and two steam jets at the right end of the corridor, with a peg board being needed to launch to either end of the spike row safely.
To the left side of the spike row, there is a crusher and a pair of steam jets blocking a Kritter operating the room's first crusher using a switch. The level's final Banana Coin is to the switch's left. To the right side of the spike row features the blocked entrance to the boss room, a pair of steam jets blocking the alcove, and the room's second crusher above a set of four peg boards directly past the steam jets. As the Kritter operating the final crusher is too hard to get to past the steam jets and the peg boards, the player can use a bomb to defeat the Kritter to the left of the crusher, thus deactivating the hazard. There is a Banana Bunch and the switch used to open the boss gate next to the Kritter's switch. Additionally, there is a DK Barrel next to the entrance to the boss room.
Upon being found by the Kongs, King K. Rool expresses disbelief that he and his Kritter henchmen are still being followed. King K. Rool then gloats that he anticipated the Kongs' arrival and planned a trap for them, much to Diddy Kong's confusion. A trapdoor then opens up beneath Donkey Kong, Diddy Kong, Cranky Kong, and Xananab, causing them to fall inside the volcano. One of King K. Rool's Kritters jumps in after them, and uses a Banana Crystal to merge with an ominous stone with a dragon marking. The Dragon Kremling bursts out of the stone, and the boss battle commences.
After the Dragon Kremling is defeated, the Kongs somehow escape the volcano and find King K. Rool's King Kruiser IV. King K. Rool then appears on a floating platform and boasts how he will supposedly conquer the universe, then escapes on his ship. Diddy Kong then suggests that they climb to the top of High-High Island to intercept K. Rool, to which Cranky Kong concedes.