The story of Psychic World begins in a remote science laboratory where a scientist and his two female assistants are working on ESP research. A section of the lab explodes, and one of the assistants is taken by the monsters that were being kept for experiments. The scientist gives an "ESP booster" to the remaining assistant, allowing her to embark on a rescue mission.
Gameplay in Psychic World involves controlling your character as she uses her psychic powers to blast away enemies. You start with limited powers and can collect more as you defeat monsters. Your arsenal includes various abilities such as fire, ice, sonic waves, temporary invincibility, levitation, and others. To access these powers, press Down + Button 2.