Dragon's Lair 3D: Return to the Lair tells the story of Dirk the Daring, a brave knight on a quest to save the princess Daphne from the clutches of the evil dragon Singe. The princess was kidnapped by the dark wizard Mordroc and imprisoned in his medieval castle. With courage and quick reflexes, Dirk must overcome deadly traps and face challenges to rescue the princess and escape alive.
Gameplay-wise, Dragon's Lair 3D: Return to the Lair is an action platformer with unrestricted character movement. Dirk battles enemies, jumps across platforms and hazards, solves puzzles, and upgrades his health and mana points. He also uses a crossbow to fight enemies and solve some puzzles. Collecting Dragon Essences grants him new powers.
The game features the familiar cartoon-like style of the original version, with many familiar locations and boss enemies.