Jak & Daxter Collection follows the story of two mischievous village friends, Jak and Daxter, who sneak off to Misty Island despite wise sage Samos' warning. There, Daxter falls into a pool of evil Dark Eco, transforming him into a weasel-like creature. The Lurkers use this Dark Eco for their own malevolent purposes, and the game's plot unfolds as the player progresses.
The gameplay in Jak & Daxter Collection involves various actions such as jumping, double-jumping, spin-kicking, uppercutting, hanging onto objects, riding vehicles, and occasionally riding creatures to complete assigned tasks. Players can also interact with non-playable characters (NPCs) to play their side quests and mini-games.