As the game begins, the player's goal is to set up a network of pipes to allow the mysterious substance known as Pipe Dream 's flooz to flow through as many pieces as possible. The pieces are randomly arranged and come in seven different types, including straight lines, corners, and cross-over pieces that can carry the flooz across horizontally or vertically.
With only seconds to start placing pieces before the flooz starts flowing from its starting position, the player must think strategically about where to place each piece. The goal is to create a seamless flow of the flooz through as many pipes as possible, but there's often a gap waiting to be filled. Luckily, players can replace a piece with another in the same square for a slight scoring penalty.
The game gets increasingly challenging as new obstacles are introduced, such as blocked squares and gaps on the side-wall that allow the flooz to thread through. Later levels also feature bonus games where the player must place pieces in the lowest open space in each column, similar to the board game "Connect 4". The ultimate goal is to score points by looping the flooz through multiple cross-over pieces or passing it through every square on the screen.