The gameplay is a standard fighting game, but Elfmania does not have special moves triggered by various button combinations, as is typical in most other games of this type. Instead, there are only a few standard attacks and one special move for each character. In order to win the game, different characters have to be used, which need to be bought. To buy more expensive and stronger characters, the player collects gold coins as a reward for beating enemies.
Multiplayer fights use an odd variation of tic-tac-toe: the game has an overhead map consisting of squares. Players choose where to fight, and the square is marked with the winner's symbol. Getting a line of six squares wins the game.