In the game the player (and up to three other players with a special adapter) controlled a character that has to jump and punch his way through various Elm Street locations and homes to collect all of the bones of Freddy Krueger in order to place them in a furnace and end his reign of terror. Each character has the ability to withstand roughly a dozen direct hits, before they lose a life (the character floats up to the top of the screen as an angel). Each character has an on-screen sleep meter that slowly decline (and can be replenished with cups of coffee). When the character fall asleep, the setting become darker and more sinister and the villains harder to defeat. While the character is asleep, icons can be collected that allows their character to switch between three different Dream Warriors. Бродилка по мотивам одноименного фильма ужасов. Вид сбоку, нужно бегать по домам и подвалам и собирать кости Фредди. Только после сбора всех костей выпускают с текущего уровня. После прохождения нескольких комнат обычно бывает босс уровня, а дальше все начинается с другого дома.