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This level takes place in the arm of the sea that separates the first wharf from the rest of the area. Therefore, it is also the first underwater level in the game. To complete it, Dixie Kong and Kiddy Kong must swim between the large coral reefs, avoiding the numerous Kocos, Bounty Basses and Bazzas. The Kongs will encounter many Lurchins in the second half of the level as well. Fortunately, Enguarde will help Dixie and Kiddy deal with their opponents until the end of the level. With his sharp bill, he can be quite a help on the monkeys' quest. Seabed Shanty can also be considered as quite a labyrinth, but in many places, arrow-shaped bananas will show the right path to follow.
Seabed Shanty is one of the only levels in Donkey Kong Land III where the DK Coin can be found without having to defeat a Koin. Actually, in Donkey Kong Country 3: Dixie Kong's Double Trouble!, there was a small cave at the end of each "Coral" level in which the Kongs could find the Koin. Such caves do not appear in the Game Boy sequel.
The level begins with the monkeys swimming through a wide, underwater path. If they curve around the bend, they can find an Animal Barrel with Enguarde in it, though it is completely optional to get him. Traveling through more of the level, the heroes follow several arrows, directing them to an area occupied by some Bazzas. Avoiding the swift enemies, they continue along the path, making some twists and turns and occasionally meeting Bazzas. Hovering downwards from a group of Bazzas, the monkeys move past more fish foes and travel to the left at the bottom of the area. Soon, they pass a No Animal Sign, which turns Enguarde back into the Kongs if he was used. Farther into the level, the apes swim along the long passageways and soon find the letter O, as well as the Star Barrel.
About halfway through the level, the heroes head downward through a long pathway. With the help of some banana trails, they soon reach the letter N. After they swim downwards a little more, they have to go east and swim through a slanted pathway around many Lurchins. Going north from here, they meet some Bazzas and then another Animal Barrel. Just as before, the Kongs can optionally turn into Enguarde. Continuing through the stage, the apes encounter more Lurchins and then have to travel downwards past the letter G. Moving down a long, wide pathway, they have to avoid even more enemies, and then follow an arrow to the east. If they swim through this pathway, they find a flagpole. Touching the flagpole ends the level.
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