TY the Tasmanian Tiger 3 is a action & adventure game that follows the story of Ty, who helped the Bunyup Elder rid the Dreamtime of the Quinkan. However, something goes wrong and Ty finds himself six months in the future. The Quinkan have invaded Southern Rivers, and the Bush Rescue team from the previous game has disbanded during Ty's absence. It's up to Ty to reunite his team members and stop the Quinkan from unleashing the mysterious Quinking, an evil being of supreme power.
As Ty, players can use his boomerangs for consecutive ranged attacks or bite at foes. The boomerang can be customized in various ways, such as changing the chassis or equipping special Bunyip Stones. Some stones are rewards for completing tasks, while others can be purchased from the Rang Shop using opals, the game's currency.
Players can choose from robotic mechs like the Shadow or Extreme Bunyip, a Crabmersible submarine, or the Gunyip airplane. Ty can also participate in cart races against other characters to earn powerups and more opals.