Dungeons & Dragons: Chronicles of Mystara is set in the Forgotten Realms year of 1420 DR. Evil wizard Rezlus and his Zhentarim forces are trying to invade and conquer the Dalelands. The main characters, summoned by Good Lorin-Aria, must protect the Daggerdale from Rezlus' invasion.
The game features action-packed beat'em up gameplay with two types of attack, defense, and three special powers. Players can switch between a third-person perspective and top-down view. Quests are given to characters in settlements, followed by navigating hostile territories, and returning to complete the quest. If all characters are killed during a quest, progress is rolled back, but experience and gold are retained.
The game includes both single-player and co-operative multiplayer modes for up to four players. Character customization is available as players reach new levels, allowing them to upgrade clothes, weapons, and equipment. The game is set in the 4th Edition Dungeons & Dragons universe, with limited character progression to a maximum of 10 levels.