Unlike Minecraft, Minecraft Dungeons does not feature an open world nor mining or building. Instead, it is a point-and-click hack and slash-styled dungeon crawler, rendered from an isometric perspective. Players explore procedurally generated and hand crafted dungeons filled with randomly-generated monsters and also deal with traps, puzzles, bosses and finding treasure. There is no class system; players can use any weapon or armor they wish. The game includes a four-player local and online multiplayer.
The opening cutscene tells the story of a villager named Archie, who was driven away by his people. While searching for a new home, he was forced to leave every village he found due to Villagers not allowing him to live with them. One day, Archie stumbled upon a powerful artifact known as the Orb of Dominance, which granted him magic powers but also corrupted him.
Now known as the "Arch-Illager", he sought vengeance on all those who wronged him and subjugated numerous villages with his newly acquired army.
Players assume the role of heroes who embark on a quest to defeat the Arch-Illager while liberating oppressed villages, fighting monsters, and completing various quests.
Ultimately, the players face the Arch-Illager in his castle and destroy the Orb of Dominance, freeing Archie from its influence. Rather than punish Archie for his actions, the players show him kindness and forgiveness and quickly befriend him.
As the players and Archie depart, the Orb is shown to be rebuilding itself. It is then found by an Enderman who picks up the orb and goes into the End. The last scene in the cutscene shows an Endersent climbing out of the portal.
In the game, after defeating Archie, players unlock new difficulties that make the game more challenging but provide better rewards.