Quiz Avenue III offers, like its two predecessors, a quest mode and a versus mode - the latter consists in this installment of a series of trivia questions for up to eight players (controlling a variety of tough-looking fighters), with rounds disguised as fighting games, each wrong answer leading to a loss of hit points. The main difference between this entry and the previous ones lies in the quest mode and its RPG elements.

Like a full-fledged role-playing game, the quest mode has leveling up, free top-down navigation, overworld, towns, dungeons, monetary system, weapons, armor, items, and even companions who join the main heroine, a girl named Konoha, who was raised by an old fighter and has to use her special abilities to rid the land of monsters. Battles occur randomly; the player has the choice to try to escape before the battle begins. Each enemy asks a row of trivia questions; correct answers damage the enemy and eventually defeat him, while wrong answers deplete the HP of the controllable characters. Levels, weapons, armor and items contribute to the damage equation, raising or lowering the amount of questions needed to answer correctly in order to prevail.