The Town of Light is a psychological adventure game set in the real-life Ospedale Psichiatrico di Volterra psychiatric hospital in Tuscany, Italy. The protagonist, Renée, was an inmate at the institution from 1938 to 1940 at the age of sixteen. The game takes place in 2016, where Renée explores the abandoned and ruined hospital, which triggers interactive flashbacks that switch between present and past moments.
Renée can freely explore the hospital using a first-person perspective, interacting with the environment to open doors and windows, and examining objects up close. The game features no inventory system, but certain objects can be carried in her hands for short periods. A flashlight can be activated in dark environments, allowing infinite battery life.
The story is largely linear, but with a few twists. Renée's experiences are stored in a synopsis menu that can be accessed at any time: Experience (written account), Memories (short flashbacks), and Medical Records (documents to consult). Renée must make choices by telling the player how to interpret events, such as siding with the hospital or encouraging her intuition.
The game consists of fifteen chapters, acting as checkpoints and the only save system. Certain choices lead to branching stories that introduce new events and interpretations. The chapter system allows replaying earlier ones quickly, encouraging players to revisit the full story.
There are a few environmental puzzles, requiring interpretation of hints to understand what to do or where to go. The game features a map hanging in the entrance, which can be used for orientation. When stuck, Renée repeats her intentions, and optional hints can be used. Audio cues may also steer the player in the right direction.