Funhouse of Terror is the third track in the Watermelon Cup, and the 11th course in Pac-Man World Rally.
You start at a double spiral, and you end in a ramp. You fall into a swirl and end up in a 90-degree square. After that, you'll come out on a fork in the road. The left road has flamethrowers attempting to burn you unless you are holding a Watermelon. The right path has two ways, the top path has 45-degree turns and the bottom path consists of the player going in a tunnel. Once you picked your road, enter the clown's mouth and the lap is complete.
- The track's design is a reference to the Carnival line of levels from Pac-Man World.