SpongeBob SquarePants: Creature from the Krusty Krab is an action-adventure platform game released for Microsoft Windows, Game Boy Advance, GameCube, PlayStation 2, Nintendo DS and Wii by THQ. The PS2, GameCube, and Wii versions are all ports of the same game developed by Blitz Games, while the Game Boy Advance, Nintendo DS, and PC versions were separate games developed by WayForward Technologies and AWE Games respectively.

It is based on the Nickelodeon animated series SpongeBob SquarePants. It stars the title character, Patrick Star and Plankton as they journey to nine different worlds, supposedly inside the dreams of the characters. The Wii version was a North American launch title. It is also the first SpongeBob game released in Japan (PlayStation 2 and Wii versions), but was released under the title SpongeBob (スポンジ・ボブ Suponjibobu), to mark it as the first video game in the SpongeBob series to have a Japanese release. The PC version of the game is titled SpongeBob SquarePants: Nighty Nightmare.

Players have access to three playable characters during the game, SpongeBob SquarePants, Patrick Starfishman (Patrick Star in superhero form), and Sheldon J. Plankton, and must guide them through nine levels of play in a dreamworld. Four different types of gameplay have been incorporated into the game, known as flying, rampaging, racing, and platforming. During flying sections, the game sets obstacles, one in front of another, and the player must maneuver past them. In most cases, the game will tell the player which way to fly (up, down, left, and right). On the Wii, the player uses the controller like an actual plane control stick. The most common cases of this is when SpongeBob uses his plane to attack a giant-sized Plankton. In rampage levels, the player controls a giant sized Plankton and uses special powers and moves to destroy everything in their path. The player's laser power is indicated by a bar on the right side of the screen, which refills after use. The Wii version features controller movements that respectively activate moves. Racing gameplay is similar to most racing games; it is featured in both the air and the ground's gameplay, fuel must be collected in order to keep the player's vehicle running. The platforming gameplay is spread throughout the game, such as when Plankton must escape from a live Krabby Patty or when Patrick Starfishman saves Bikini Bottom from his evil form, Dreaded Patrick.

The entire storyline takes place inside the dreams of SpongeBob SquarePants, Patrick Star and Sheldon Plankton, where each individual must survive the most bizarre adventures.

In SpongeBob's dream, his bed transforms into a hot rod and he drives it around a track across Bikini Bottom, which now resembles an automobile-hot rod paradise inspired by the works of Ed Roth.

While gloating that he won a practice race and finally obtained his license, SpongeBob and his hot rod get ran over by Plankton, causing him to drop and lose his license. You are then introduced to basic platform mechanics by Mrs. Puff. After getting his license back, he is challenged by Piston Patrick (another rival racer) in “Some like it hot rod.” He beats him narrowly and once again he is ran over by Plankton, but this time completely destroying his hot rod. After finding parts needed to repair it, you finally race Plankton – and win. With it being SpongeBob’s luck, he is run over again, this time by Gary. [The last wave of platforming in this level (dream) is searching for upgrades for the Hot Rod. As usual you deal with goons and avoid obstacles.]

You race Gary with the additional upgrades, and win. Distracted with the feeling of victory, SpongeBob accidentally drives into an unnoticed pit. SpongeBob nose dives through the pit falls until he reaches the bottom, where he is eaten by an Alaskan Bull Worm. While observing his unfortunate new surroundings, he encounters Old Man Jenkins, who is building an airplane. He says that the residents of the worm (or village people) are being held hostage and have been trying to help him complete the plane with spare parts. Going deeper within the worm & rescuing all captive villagers, SpongeBob and Old Man Jenkins finish the plane and attempt their escape. However, after coming up the esophagus, the worm shuts his mouth, thus leaving a cliffhanger. (Questioning their success of escape)

Afterwards the story shifts to a comic book-like world revolving around local superhero Starfish-Man, who everyone in the story resembles.