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Mugenkan (夢幻館 Mugenkan, "mansion of fantasies") is a mysterious mansion located within the Lake of Blood. It is the final destination for the player in Lotus Land Story.

The mansion apparently resides on the boundary between Gensokyo and the Dream World, however, it is not certain whether this is referring to the same Dream world from Story of Eastern Wonderland or not. This boundary is located beneath the Lake of Blood, which is in the middle of the lake on a mountain behind the Hakurei Shrine. It's unknown if stage 6 of Lotus Land Story actually takes place in Mugenkan as the manual simply says the location is "???" and the background is simply just stars and a black background. Due to the fact that the theme for the stage is called "Dream Land" it is speculated that it stage 6 may take place in the Dream World, if not, another Dream World.

The 3rd stage has many blue tiles at first up until the front door of Mugenkan, which the gatekeeper Elly guards.
The 4th stage has a red checkered background.
The 5th stage contains blue checkered platforms with various large, blue, transparent stars flowing down the screen at all times. There are also pocketwatches beneath those stars scattered throughout the background.

During the 4th stage of Lotus Land Story, Reimu Hakurei or Marisa Kirisame is your opponent (depending on which character you select to play as). The following are two battles with Yuuka Kazami, the second of which takes place in an odd Dream World.

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