The gameplay is divided into four rounds, each consisting of eight stages. In some rounds, you have to step on switches to rotate sections of the conveyor belt in "Switch Mode". This requires careful timing and navigation, as getting off the switch will reset its position. Other rounds feature "Bridge Mode", where you install bridges between the belts to control the flow of products.
Factory Panic features a timer that decreases when someone gets an unwanted product. There are also special items on the belt that can aid or hinder your progress, such as a megaphone that makes your scream attack more powerful or a weight that can be placed on a switch.