Sky Mountain contains the first three stages of World 7 in Newer Super Mario Bros. Wii. Along with Bombard Cliffs, it has the fewest number of levels of any section of the game. It takes place on a tall mountain adjacent to the Mushroom Peaks.
Sky Mountain is normally unlocked by completing 6-Airship: Shipwreck Galleon. Alternatively, it may be unlocked by completing C-Tower: Clockwork Tower. Doing so allows the players to skip directly to 7-2: Paratroopa Peaks. This is the last section of the game within the Mushroom Kingdom, as after completing 7-3: Beanstalk Ascent the players will ascend to Starry Skies (which contains the remaining levels in World 7).
Sky Mountain contains many tall mountains and cliffs, similar to World 6 in New Super Mario Bros. Wii. Common enemies encountered include Shy Guys (both normal and giant), Koopa Troopas and Koopa Paratroopas.
World 7-1: Shy Guy Peaks - a level containing peaks and cliffs which the players must traverse in order to advance while avoiding many Shy Guys (including giant ones). Yoshi makes his final appearance of the game here.
World 7-2: Paratroopa Peaks - an autoscrolling athletic level in which players must deal with a small army of Koopa Troopas and Paratroopas.
World 7-3: Beanstalk Ascent - a level in which players must climb beanstalks in order to reach the top of the Mushroom Peaks...and beyond! Shy Guys attempt to hamper the players' progress as they climb.