Each character has a total of seven rabbits to catch, making for a total of 28 rabbits, excluding the one who gives Yoshi a Key to the castle at the start. The color of the Rabbits that appear depend on which character is currently being played: yellow for Yoshi, pink for Mario, green for Luigi, and orange for Wario.

Whenever a Rabbit is caught for the first time, it gives the playable character a key that unlocks a certain minigame. The first Rabbit is found at the start of the game, and Yoshi must catch it to acquire a key that unlocks the front door of Peach's Castle, allowing him to enter. While MIPS does not reappear, there are a variety of rabbits found throughout Peach's Castle, both inside and outside.

Each time, Mario can catch MIPS to obtain one of the castle's two secret stars.

Only one yellow rabbit named MIPS makes an appearance, and he appears on the basement floor of Princess Peach's Castle on two separate occasions: the first time is after obtaining at least 15 Power Stars and the second time is after having at least 50 Power Stars.

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