Set in the Sylvester Stallone -inspired film of the same name, Cliffhanger is a standard side-scrolling beat'em up. Sly must fight thugs and the elements as he tracks down stolen cash dropped around the peaks of the Rockies. The game features combat inspired by Final Fight, broken up by mountain climbing and running (or 3-D snowboarding on the Sega CD) from avalanches.
The gameplay follows a pattern of natural hazards, such as scaling cliffs or leaping over gaps, followed by fighting segments, then more natural hazards. The available fighting moves are limited, and hitting an enemy character is less accurate compared to other games in this genre.
The plot is identical to the film, with levels based on scenes inspired by the movie. Animated cutscenes move the story along on the cartridge systems, while brief clips from the film play between levels on the Sega CD.