In addition to the new "class" system, new level designs were added, including the possibility of encountering them in altered ways by having the play-field turned in steps of 90°. Other notable additions include the ability to ricochet shots off walls by means of a special pick-up, acid puddles that caused large, predetermined amounts of damage and a large dragon which would occupy multiple squares and require multiple hits to destroy.

The gameplay is very similar to the original Gauntlet, a top down dungeon crawl supporting up to four players. The biggest difference from the original game is that players can choose identical classes, instead of being limited to a particular one for each joystick; each player is differentiated by color. Thus, instead of having a "warrior", "wizard", and "valkyrie" (for instance), in Gauntlet II there could be a "red wizard", a "blue elf" and a "green warrior".