Super Mario 64 Bloopers: Bowser and the Nightmare Stone is the seventeenth episode of Season 2 and the sixty-sixth overall to be uploaded by SMG4.
This episode was aired on January 22, 2012.
While Bowser thinks of an evil scheme, since he has already kidnapped Peach, he is approached by a mysterious figure. The figure reveals himself as SMG3 and offers to sell Bowser the Nightmare Stone so SMG3 can have revenge on Mario and friends. After figuring out how to use The Nightmare Stone, Bowser strikes SMG3 with lightning a lot. Bowser then uses the stone to zap Mario and Luigi into a nightmare with a scary asian toad and an evil Kirby. SMG3 takes the helm controlling The Nightmare Stone and zaps SMG4 and X into a nightmare where they are being chased by toad zombies. SMG4 throws his shotgun into the zombie horde rendering them helpless. SMG3 and Bowser then, after Bowser's initial hesitation, use the Nightmare Stone on innocent people. Bowser and SMG3 zap FM and MCG into a dream parodying SAW with RM sleeping and the two former chained to the wall via leg. The narrator introduces a stranger who has a hidden name. The stranger then enters the nightmares of our heroes to save them. After saving Mario and Luigi the three save SMG4 and X with help from Toad, who was also zapped in. After making some peanut butter on toast, MCG cuts off the wrong leg with a knife. After killing the toad zombies with a tank, the heroes save FM, MCG, and RM from the women's restroom where they were trapped and they all escape the nightmare through an exit door. Together, Mario, SMG4, and the stranger confront Bowser and SMG3. Mario tries to stop them until SMG3 hits him with a frying pan. The stranger manages to avoid the Nightmare Stone's lightning and shatters it by throwing a pickaxe at it. Afterwards, the stranger explains to Mario and friends that he knew he had to save them after someone hit him in the head with a rock. He then departs without revealing his name, leaving Mario and friends with nothing to do in a very rushed ending.