Fireworks Factory (Unlocked when you have at least 50 eggs).The third Homeworld, Evening Lake, is set during the evening inside a large lake containing parts of a submerged Tudor-style castle. Spider Town (Unlocked after completing Crawdad Farm and defeating Spike).Byrd's Base (Unlocked when you pay Moneybags 700 gems) Country Speedway (Unlocked when you have 36 Eggs).Bamboo Terrace (Unlocked when you have 30 Eggs).Spooky Swamp (Unlocked when you have 25 Eggs).Enchanted Towers (Hit the target above the portal once with a lava rock supplied by Hunter or while using the superflame power-up to open it).The second Homeworld, Midday Garden, is set during the day with a blue sky overlooking wide gardens and large towering castles. Crawdad Farm (Unlocked after defeating Buzz).Sheila's Alp (Unlocked when you pay Moneybags 300 gems).Mushroom Speedway (Unlocked when you have at least 20 eggs).Seashell Shore (Unlocked when you have at least 14 eggs).Molten Crater (Unlocked when you have at least 10 eggs).The starting Homeworld, this world is set during the morning with lush green hillsides, small woods and lakes.

There is also one additional Realm that requires completing everything else in the game. In the final Homeworld, Spyro confronts the Sorceress herself and defeats her. After completing a normal Realm in one of the first 3 Homeworlds, an inhabitant of that Realm will travel to the respective Homeworld to help build a vehicle that will enable Spyro to travel to the next world, but not before defeating the Sorceress' most powerful creatures, which acts as that Homeworld's boss. Each Homeworld contains at least 4 normal Realms (2 that are already open and 2 that require a specific number of eggs to unlock), 1 rebel Realm which acts as a tutorial for each of Spyro's allies, 1 Speedway which also requires eggs to unlock, and 1 Sparx Realm which can only be accessed by defeating the Homeworld's Boss. There are 4 Homeworlds in 'The Forgotten Realms', all named after times in the day. Aiding her is the apprentice Bianca, who attempts to hinder Spyro on his mission. The primary antagonist of the game is the Sorceress, a tyrant who rules over the Forgotten Realms with her forces. Byrd the Penguin, Bentley the Yeti, and Agent 9 the Monkey.

Four other playable characters are freed from Moneybags during the game these include Sheila the Kangaroo, Sgt. Also aiding Spyro is Hunter, who teaches the player game mechanics and is a playable character at special racing levels. Sparx functions as the player's health meter and assists the player in gathering gems Sparx is a playable character in certain levels. Spyro is assisted by many characters during the course of Year of the Dragon. Spyro saves Sheila, as they converse in front of her alp.

Spyro playstation 3