The Caribbean was included in the game because Port Royal was a well-received and popular world in Kingdom Hearts II, and the developers wanted at least one live-action world in Kingdom Hearts III. It is based on the third film, At World's End, rather than the second film, Dead Man's Chest, which ended on a cliffhanger.
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Kingdom Hearts III
Sora, Donald, and Goofy sail a raft for fun, but fall off a waterfall into an abyss below. To their surprise, the fall dropped them into a vast desert. Trudging on, they see the Pearl in the distance and are soon joined by Jack Sparrow, who asks for help in catching his beloved ship, which is being carried off by magic crabs.
Riding the Pearl to the shore, they meet Will, Elizabeth, Gibbs, Tia Dalma and a revived Barbossa; Cutler Beckett is taking over the sea, blackmailing Davy Jones to kill pirates for him. Sailing to escape the Locker, Tia Dalma reveals Jack is after a box that can protect him from Jones, for not honing their deal; it contains Jones' heart, which gives whoever has the chest leverage over him.
Vexen and Luxord are there as well. Vexen is puzzled by how Davy Jones can live without a heart, believing it holds the secret to perfecting his replicas. Luxord tells him to reign in his curiosity, and allow him to collect the chest as per their orders.
After a green flash at sunrise, the Pearl returns to the living world. Suddenly, the ship is attacked by the Raging Vulture. Once Sora takes out the Heartless, he falls into the sea. Donald and Goofy wake him later, revealing their friends left them and Jack on an island. Finding a new ship, the Leviathan, hidden in the island, they set sail and are surprised by a ship sailed by Luxord. Luxord asks for a race, to win information about the chest. Despite losing, Luxord manages to trick Jack into revealing the chest is on the Flying Dutchman and disappears.
The Leviathan docks at Port Royal for repairs; oddly, white crabs are needed for it. Once the ship is fixed, Jack reveals he's a copy sent by the sea goddess to help; the real him and their friends are facing Beckett's armada at Shipwreck Cove.
By this time, Jack was taken hostage by Jones and Tia Dalma, the sea goddess in mortal form, was released by the pirates in the hope she would help. Sora encourages his friends to keep fighting. The Pearl and the Dutchman enter a whirlpool, followed by the Leviathan. Luxord appears on Sora's ship, wishing to take the chest despite Sora telling him it's useless to the Organization. Regardless, Luxord summons the Kraken to restrain the Pearl. Freeing the Pearl, Sora, Donald and Goofy board the Dutchman, where they help Jack fight Jones.
Will and Elizabeth join the fight, but Will is fatally stabbed by Jones. Sora, Donald and Goofy distract Jones, allowing Jack to help Will stab Jones' heart in the chest. Leaving Will behind, everyone returns to the Pearl; moments later, the Dutchman resurfaces with Will in command. Both ships fire on the Endeavour, killing Beckett and ending his reign of terror. Gibbs reveals Will was saved by taking on Jones' curse, but at the cost of having to ferry souls to the afterlife in exchange for one day a shore every ten years. Jack assures Sora that one day is enough for hearts to connect.
Later, after Xehanort's defeat, Elizabeth watches as Will leaves to carry out his duty. In Port Royal, Jack and Gibbs watch as the Black Pearl sails away.
Unlike when Sora, Donald and Goofy previously visited the portion of the world near Port Royal, while visiting The Caribbean, they appear in proper pirate attire. As Sora is the de facto "leader", he appears in captain's garb, while Donald and Goofy wear crewman clothes.
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