Putty Moon, the place where all the putties live, has been taken over by an evil wizard named Dazzledaze. Putty has been banished from the moon to the planet below. To return to Putty Moon and oust the evil wizard, Putty enlists the help of some robots ("bots") to build a skyscraper that will reach up to Putty Moon.
In Putty, the player controls a blue blob with eyes. Putty has many moves that he could use to attack enemies or to navigate around the level. These abilities include being able to stretch out upwards, downwards, left and right to access far-off ledges. He also has the ability to inflate. This allows him to provide a cushioned landing for any falling bots. Over-inflation also acts as a "smart bomb", with Putty bursting, killing all of the enemies on the screen, whilst reducing his health in the process.
Putty is able to form part of himself into a fist, allowing him to punch left or right to dispatch enemies.
Putty is also able to melt into the floor, making him invulnerable and also allowing him to absorb enemies, recovering a small amount of health in the process. With certain enemies in the game, such as the clockwork orange, once Putty has absorbed one he is then able to morph into the enemy's shape to use its abilities.
A final ability of Putty's is being able to create a mug of coffee from part of himself, which will distract bots and make them stand still.
Source: Wikipedia, "Putty (computer game)", available under the CC-BY-SA License.