In Dragonfire for the Atari 2600, each level consists of two stages. The first stage features a side view of the character attempting to cross a drawbridge to reach a castle. The player must navigate the bridge by ducking under high fireballs and jumping over low ones. If successful, the second stage begins, which has a more top-down point of view. The player must guide the character around a room, collecting treasure and avoiding fireballs spewed by a dragon that patrols the bottom of the screen. Collecting every piece of treasure opens a door to the next level.
A single hit from a fireball in either stage takes one of the player’s initial seven lives. As the levels progress, the character and fireballs become progressively faster, making the game more challenging.