Players choose Terry Bogard, Andy Bogard, or Joe Higashi and fight through a sequence of matches in South Town. Each bout is won by taking two rounds before the time limit expires. The single-player route culminates in a battle against Geese Howard.

Combat takes place across two horizontal planes. Fighters can move, jump, crouch, block, attack, throw opponents, and use character-specific special techniques. In some situations, changing planes avoids attacks or creates a new opening. A two-player versus mode allows direct matches, while character selection is limited compared with later entries.

Learn the timing of each fighter's basic attacks before relying on special moves. Blocking and short jumps are especially useful against opponents who repeatedly approach with heavy attacks.

Use the two-plane system deliberately: switch lanes to evade a predictable attack, then return with a fast strike or throw. Save special-move attempts for clear openings, because missed inputs can leave the fighter exposed.