Magic Carpets are transportation devices that debut in Half-Genie Hero. They are legendary carpets created by magic silk worms that can be used to transport humans who are on it quickly to their destinations. As a result, they are often used for racing in tournaments. In Cape Crustacean there is a magic carpet tournament that is held annually. Tickets are said to be very hard to come by and people attend by the hundreds.
Shantae: Half-Genie Hero[]
Shantae enters the annual magic carpet tournament in Cape Crustacean after being tipped off about a heist that was going to happen. In the first part of the level, she hops from carpet to carpet in order to reach first place, where she runs into Twitch & Vinegar stealing carpets for the Ammo Baron.
In the last few rooms of the Ammo Baron's main airship, Shantae can find magic carpets being un-woven into large spools. The Ammo Baron reveals that he's using the magic carpet threads to make flying uniforms for himself and his soldiers, as the alternative would require kidnapping a (cute) endangered species. Shantae ends up defeating him along with his army, destroying the new uniforms in the process.
Shantae and the Seven Sirens[]
While magic carpets don't feature outright, an NPC mentions that magic carpets are used to keep airships aloft.