Mystic Heroes is a fighting action game, similar to Koei's Dynasty Warriors. Players can perform melee attacks and element spells, which become more powerful with continuous use. The game has eight stages.

There are four playable characters, and four unlockable characters in the PS2 version, for a total of eight. The game features a single-player story mode and three additional single-player modes, as well as co-op and versus multiplayer.