The gameplay in Hydlide is a mix of exploration, combat, and character progression. Players must venture through vast wilderness areas, exploring dungeons and battling enemies along the way. The game's combat system is similar to that found in Ys series, requiring players to "bump" into enemies to attack them, while also preventing them from attacking Sir Jim from the sides or back. Players can switch between defensive and offensive stances with a single button press, and use magic spells to aid in combat. As Sir Jim progresses through the game, he will grow stronger and gain better parameters.