This card states that you can either add a "Kuriboh" or "Winged Kuriboh" to your hand or summon it. This means that you can add "Kuriboh" to your hand to be able to use its effect for later or summon a "Winged Kuriboh" in order to use its effect.
This card combos with "Transcendent Wings" to create a nasty surprise for your opponent. When your opponent attacks, chain this card to summon "Winged Kuriboh" to the field. If they opt to attack it, activate "Transcendent Wings", summon "Winged Kuriboh LV10", and activate its effect. With "Battle Mania" you can actually force the attack and, against decks that revolve around swarming, possibly even create an OTK. This strategy is good because if your opponent has "Royal Decree" out or "Jinzo", then they could believe that the 2 set cards ("Transcendent Wings" and "Flute of summoning Kuriboh") are traps and attack without concern since most quick spells don't stop monsters.
Use this effect to Special Summon a "Kuriboh" or "Winged Kuriboh", then tribute it to summon a monster.
This card works well in a "Sky Scourge" deck containing "Kuriboh" and "Winged Kuriboh".