The protagonists of Hunted: The Demon's Forge are the elven woman E'lara and the human warrior Caddoc, two mercenaries in a long-time working relationship. They get hunted by dark visions of demons and embark on an epic fight to save the world.
The game is designed as a co-op title, where the two heroes have to work together. Caddoc specializes in melee combat, while E'lara is an archer. Both characters can switch fighting styles, but are less effective when doing so. Most time is spent in combat, with players controlling both characters and using their abilities, such as blocking and dodging.
The game features special attacks for each character, which are learned and upgraded by finding crystals. Weapons and armor wear off over time and can be replaced with new equipment found on racks or in enemy remains. When playing alone, the player always switches between E'lara and Caddoc, with the other controlled by the AI.