Dizzy's world is being threatened by the evil wizard Zaks. The player takes control of Dizzy, the anthropomorphic egg, who must search the land for a Leprechaun's Wig, a Cloud's Silver Lining, a Vampire Dux Feather, and Troll Brew, to make a potion to defeat Zaks with.
This is the first game in a long line of platform games starring Dizzy. Like all other installments, the gameplay is standard platformer fare, with the exception of inventory items scattered around the world, which are necessary to overcome obstacles and progress through the game. The world expands in all four compass directions, items are frequently far away from the obstacles they are used on, and it is only possible to hold one item in the inventory at a time, so much backtracking is necessary.
There are many monsters and hazards in the game's stages. Some inventory items are used to destroy monsters. For example, one of the first inventory items the Dizzy finds is birdseed. As long as birdseed is the item in the inventory, Dizzy destroys any birds he touches.