Crouching Tiger Hidden Dragon is set in Qing dynasty China in the 19th Century. The game follows the story of characters Jen, Yu Shu Lien, and Li Mu Bai as they navigate their paths. When warrior Li decides to retire, he passes on his famous jade sword, The Green Destiny, to a nobleman, only for it to be stolen shortly after. Li must team up with friend Yu Shu Lien and encounter the sassy nobleman's daughter Jen along the way.
The game is divided into three parts, each focusing on one of the main characters. Players will experience the film's signature martial arts moves based on Wudan fighting style. Gameplay involves basic attacks, combos, special moves, and defensive actions like blocking and evasion. As players progress, they can learn new moves, collect items, and earn rewards. Skills are improved by using specific attacks, which can be leveled up.
Throughout the game, players will encounter various weapons to collect, including axes, swords, spears, sabers, and more exotic variants like falchion and firangi. New weapons can be acquired during battles, but enemies can also pick them up.