The bizarre animation features a youngster falling asleep at his school desk and dreaming of fighting the Americans.
It shows his school equipment gradually transforming into military hardware, with his protractor forming a rocket launcher using pencils as missiles.
The boy then uses the weapon to blast at American Navy ships off the hermit state’s coastline.
As the missiles slam into the American vessels, a patriotic song plays in the background.
The boy and his friends are then showing cheering as the US boats are left smoking in the ocean.
The cartoon is thought to date back to the 1960s and produced under Kim Jong-un’s grandfather Kim Il-Sung’s regime.
It resurfaced this week as Donald Trump and North Korea continued their war of words over the North’s nuclear threat.
Last week, the rogue state launched a brand new propaganda video featuring mocked-up footage of missiles hitting US jets and warships.
Tensions have escalated since the country conducted its sixth and most powerful nuclear test this month.
US President Donald Trump claimed on Twitter Kim “won’t be around much longer” if they continued to threaten the regime.
North Korea has accused the US of declaring war and threatened to shoot down any US aircraft flying near the peninsula.
Despite the threats of violence, US Defence Secretary James Mattis said diplomatic efforts continued.
He said: ”You have seen unanimous United Nations Security Council resolutions passed that have increased the pressure, economic pressure and diplomatic pressure, on the North.
“At the same time, we maintain the capability to deter North Korea’s most dangerous threats.”
White House spokeswoman Sarah Sanders denied on Monday that the United States had declared war, calling the suggestion “absurd”.
China, which is calling for a peaceful resolution to the crisis, has slapped sanctions on the regime in a bid to bring it into line.
Chinese Foreign Ministry spokesman Lu Kang said: “We have always believed that military means should not be an option to resolve the nuclear issue on the peninsula.
“Because arms cannot resolve the differences and can only cause a bigger disaster. No side can accept this.
“We hope all sides can avoid words and actions that intensify the problem and may cause the situation to continue to escalate.”