Dig Dug is a 1-2 player arcade game where you dig your way through the earth using a shovel. Two monsters, Pooka and Fygar, chase you around, trying to stop you. Your only weapon is an air pump that can inflate them to make them explode. You can also use rocks to squash them. If the monsters are not found for several seconds, they turn into ghosts that can walk through the earth. They are invincible and cannot be killed.
Gameplay involves navigating through tunnels, collecting vegetables for points, and avoiding or defeating Pooka and Fygar. The air pump is used to inflate enemies, while rocks can be used to block their path. The game requires strategy and timing to overcome the monsters and progress through the levels.