The Genie Realm is the place where the Genies currently reside and is possibly their place of origin.
At the end of the first game, Shantae is given the choice to remain in this realm by the four Guardian Genies she rescued. However she refused, because the trip would be one-way only. It's unclear how passage to and from this world works.
The Genie Realm makes a return in Shantae: Half-Genie Hero and plays a major role in the story. After clearing each of the five worlds for the first time, Shantae receives transformation dances. There are also gateways that lead there for Shantae to gain more transformation dances or relics that unlock additional abilities of her forms. Risky's Tinkerbrain corrupted the realm's magic.
Depending of Shantae's course of action (gathering clues about Risky's plan or go directly after her), the Genie Realm can be saved or doomed by Shantae. If Shantae gathers clues about Risky's plan, her uncle Mimic will create a Magical Polarizer, which will revert the Tinkerbrain's corruption and save the Genie Realm. After the battle the emissary tells to Shantae that her mother is alive in the Genie Realm.
If Shantae decides to go directly after Risky, the Genie Realm is utterly unable to be saved and Shantae is forced to destroy the Realm.
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