Night Palace is the seventh and final location to be found in the Secret Rings Saga.
It is the residence of Erazor Djinn, an evil genie who wishes to conquer the world using the seven World Rings. It floated away from the grounds of the Arabian Nights shortly before Sonic the Hedgehog arrived. The Night Palace returns to the ground after the defeat of Alf-Layla-wa-Layla. The palace has another dimension, that resembles space and the roads are made of glass. It appears once Erazor enables magic gates as a defense against Sonic. It also has gas rooms that could potentially be dangerous.
Sonic fights a large version of Erazor Djinn. After he is defeated, he must go and collect the purple world ring, the last of the world rings. This unlocks the final boss, Alf-Layla-wa-Layla. Sonic transforms into to Darkspine Sonic, and defeats the genie.