The Town of Light is a psychological adventure game set in the Ospedale Psichiatrico di Volterra psychiatric hospital in Tuscany, Italy. The protagonist, Renée, explores an abandoned and ruined hospital in 2016, but her time is constantly switched between present and past as she experiences interactive flashbacks due to her mental illness and hallucinations. The gameplay involves freely exploring the once self-sustained hospital and surroundings using a first-person perspective. Renée can interact with the environment to open and close doors and windows, and interacts with parts of the scenery. The game has no inventory system, but players can pick up objects and examine them from up close.
The story is largely linear, but with a few twists. Players can access a synopsi menu that stores Experience, Memories, and Medical Records, which provide insight into Renée's background and life story. The game consists of fifteen chapters, with the start of each chapter acting as a checkpoint. Certain choices branch the story, introducing new events and different approaches to situations.
The gameplay involves environment-based puzzles, often requiring interpretation of hints to understand what to do or where to go. There are many different rooms, and a map hanging in the entrance can be used for orientation. The game has no help or on-screen assistance, but players can access an interactive diary from the main menu where Renée explains her childhood.