DragonHeart: Fire & Steel is based on the movie DragonHeart. Players take on the role of the retired knight Sir Bowen, former mentor to Einon, a young man injured in battle. After Einon's injury, he was taken to the last surviving dragon named Draco, where he received half of Draco's heart. Despite the fact that Draco is a good dragon, the heart turned Einon to the side of evil. Now Sir Bowen, with the eventual help of Draco, must end Einon's path of destruction.
Players will punch, kick, and slash their way through many levels that contain backgrounds parallel to the movie's settings. In their quest, they will face off against both weak and powerful enemies bent on stopping them. At the end of each level boss characters stand ready to slay the player. Defeat them in order to continue, for retreat is not an option. Rendered and digitized graphics are used in the game to represent the backgrounds and characters respectively, though the title runs in a low graphic resolution.