Michael Reynolds, a B-movie horror-film producer, offers a million dollars to anyone who can survive his terrifying movie-themed park, Illbleed . Four teenage friends, Eriko Christy, Kevin Kertsman, Randy Fairbanks, and Michel Waters, receive invitations to the ghastly park. Filled with enthusiasm, Kevin, Randy, and Michel rush to Illbled, leaving behind young Eriko. Eriko eventually heads to Illbled to search for her now-missing friends. She must find her friends, survive the horrors of Illbled, and get out alive.
Each "amusement" in Illbleed is based on one of Michael Reynolds' horror films, from a worm-infested drive-in theater to a trap-laden supermarket. The player can choose to play a level with any of the kids that have been rescued, and one character is trapped in each attraction. Robots modeled on the movies' monsters populate each attraction as well, and each is programmed to attack and kill attendees. In addition to the robots, every room in an attraction is fitted with traps to surprise and hurt. Prize money is awarded for surviving each attraction, and can be used to upgrade a character's stats or buy items.