The Floating Island is a small, flying landmass hidden among dense clouds, making it barely noticeable. Tall trees with autumn leaves surround the island on the edges. In the center of the island lies a white palace with elements reminiscent of clock faces incorporated into its architecture. The entrance to the palace is guarded by two stone Gargoyles, which will come to life to attack intruders when they get close.
In the middle of the palace is a vestibule made up of green bricks. Inside this room is a purple door with golden decorations that, when opened, will briefly emit a powerful white light. Beyond this door, the rest of the palace is a twisted staircase maze where space has seemingly been warped. The exit from this chamber comes in the form of a white door. When passing thought it, the visitor will be taken down a waterfall, which in turn will deposit the visitor onto a floor that resembles a chessboard. The Keeper of the Time Stones can be found in this chamber.
Dulcy later flew Sonic and Sally to the Floating Island to get the Time Stones. Before entering the palace though, Sonic and Sally were attacked by the palace's Gargoyles, which Sonic lured to the edge of the island. Sonic and Sally subsequently fell off the edge of the island while the Gargoyles disappeared when they tried to leave the island. Responding soon after to Sonic's rescue call, Dulcy saved Sonic and Sally, and got them back to the island, this time taking them straight to the palace. After passing through the palace's corridors, Sonic and Sally met the Keeper of the Time Stones and solved his riddle. As their reward, the Keeper of the Time Stones presented them with the Time Stone. Sonic and Sally proceeded to used the stones to go back in time to when Mobotropolis still stood in an attempt to stop Dr. Robotnik before he seized power. However, Sonic and Sally's attempt to use the Time Stones led to a mis-location in time.
- The Floating Island is similar to Angel Island that was introduced in Sonic the Hedgehog 3 while the Time Stones are similar to the Time Stones introduced in Sonic the Hedgehog CD.