Psycho Fox is a platform game where you play as a fox and must navigate through seven worlds, consisting of three areas each. At the end of each world, one of seven bosses awaits to destroy you. Some bosses appear later in the game and are identical to earlier ones. The title may be misleading, as you can also play as Hippo, Leopard, or Monkey Boy, each with their own disadvantages.
You start the game with three lives. Losing a life when touched by an enemy means your progress ends. If all lives are lost, the game is over, but you can resume where you left off. Throughout the game, several items can be found to aid you on your quest. Eggs are one of these items, which can reveal useful power-ups like the "switch" item or invincibility. Sometimes, a white bag may appear, offering additional benefits, although it's more likely to contain an enemy that will attack you.
There's little chance of finding a white bag inside an egg unless you explore secret areas hidden in level springs. These areas often require jumping on specific platforms to access them. The white bags become valuable when entering bonus stages at the end of each area, where you can place foxes on paths based on your collected white bags.