The objective is to progress through levels and defeat the final boss in each stage. Players have limited lives but can earn extra ones during gameplay. The main feature of Steel Dragon Evolution is its analog fire button, which adjusts the craft's speed and power depending on pressure applied. Alternatively, three separate buttons for low, medium, and heavy fire can be used.
Destroying enemies grants multipliers from 1x to 256x, with heavier firepower giving higher multipliers. However, some enemies drop stars, which also have a multiplier attached, but collecting them yields the highest bonus.