The Dragon's Crown is a legendary artifact that allows its bearer to control any dragon. The king of Hydeland has become obsessed with it and many adventurers have gone in quest to find it. The game is set in a medieval fantasy world and has all 2D graphics, with a 3D depth. It has an exaggerated anatomy aesthetics. Rather than having dialogues, all of the game's story is narrated. The player controls a character chosen from one of six classes: Amazon, Fighter, Elf, Dwarf, Wizard and Sorceress.
The town serves as a hub where different areas such as the Temple, the Adventurers Guild and the Castle can be accessed for different purposes. Exiting the town leads to the outside of Hydeland, where different levels, in which the player fights hordes of enemies in side-scrolling action until the area's boss is defeated, can be accessed. Loots and experience are rewarded after clearing a dungeon. The loot must be identified at Morgan's Magic Item Shop before equipping them.
The main story line consists of gathering talismans that will allow the hero to be strong enough to fight an ancient dragon. Once the dragon is defeated, a new difficulty level is unlocked. In harder modes, the character's level cap is higher and all talisman quests must be redone in order to fight an even stronger dragon. Defeating the dragon in each difficulty level restores one of the goddess statues.
The gameplay features a mix of exploration, combat and role-playing elements. The player can visit the Adventurers Guild, where requests can be taken for experience and monetary rewards, as well as view artwork in the game's gallery. The guild also teaches new skills to the player. Additionally, the town serves as a hub, allowing access to various areas and characters.
The game supports up to four players online or offline, with the option to use AI-controlled characters. Save files can be transferred between the PlayStation 3 and PS Vita versions of the game, but cross-platform play was not originally supported. However, an update later added this feature.