New Zealand Story follows the journey of Tiki, a kiwi leader, as she attempts to rescue her tribe members who were kidnapped by the evil Leopard Seal. The kidnapper's plan is to sell them at the black market, but Tiki manages to escape and sets out on a mission to rescue Phee-Phee and the others scattered across New Zealand.
The gameplay involves navigating through various cities and locations, including Auckland, Rotorua, Waitomo Caves, and Mt. Cook, while avoiding enemies and their projectiles. To progress, Tiki must defeat bosses in each city, as well as collect fruit pieces for points and upgrade her arsenal with weapons such as laser shots, bombs, and fireballs. She can also collect letters to gain extra lives.
The levels are full of challenges, including areas that require Tiki to fly up by snatching objects from enemies, and underwater sections where she must manage her oxygen supply before resurfacing. Additionally, she can use her water-squirting ability to defeat enemies when reaching the top of a body of water.