Besides leveling-up through battle, your Dream Eaters can be improved in a series of augmented reality games using the 3DS' cameras. And though these AR games are playable, they're still not very good.
Check out the video above to see a few of these AR games in action.
Kingdom Hearts 3D: Dream Drop Distance was released in Japan on March 29, 2012 for the Nintendo 3DS. A western release is planned for sometime in summer 2012.