Cliffhanger is a standard side-scrolling beat'em up based off of the Stallone film of the same name. Sly must fight thugs and the elements as he tracks down suitcases of stolen cash dropped around the peaks of the Rockies. Combat follows the Final Fight standard, broken up by some mountain climbing and running (or 3-D snowboarding on the Sega CD) from avalanches.
Cliffhanger gameplay involves dealing with natural hazards, such as scaling cliffs or leaping over gaps, followed by fighting segments. The available fighting moves is limited, compared to other games of this type, and the ability to hit an enemy character is noticeably less accurate. Enemies are standard brawler crooks, occasionally carrying guns and knives that can be picked up.
The plot follows the same storyline as the film, with levels based off or inspired by scenes in the movie. Animated cutscenes on the cartridge system move the story along, while brief clips from the film play between levels on the Sega CD.