Ghosts ‘N Goblins is a sideways-scrolling action platformer split across six stages; each must be completed within three minutes (or a life is lost), taking in increasingly challenging woodland, village, mountain, and underground settings.
The brave knight Arthur must save his beloved Princess from the Demon King Astaroth and his minions, including the undead (ghosts, zombies), bats, ogres, and goblins. Moving platforms, ladders, and water/fire dangers are other difficulties.
The player can move left and right, leap, and has a lance to use as a weapon. When an enemy attacks Arthur, he loses his armor and runs around in his underpants; getting hit again causes the player to lose a life. As with most games in this genre, the player can collect power-ups such as daggers and bombs during the game, giving them more firepower.