Earth is in trouble from the Black Wizard Velnor, as he has finally found the tomb of Grako to turn himself into a demon. Time is short as he prepares for the change and so instead of sending a huge army to stop him, you have been chosen for this quest. You have arrived at Mt. Elk and you must enter the mountain and find Velnor hidden in the Goblin Labyrinth to stop his evil plan.

Before you start your adventure you must choose one of three classes. These are Warrior, Wizard or Priest. Each class has it's own abilities and strengths, The Warrior is strong but can use no spells, the Wizard is weaker but can use spells like Polymorph, Fireball and Teleport, the Priest is medium strength and can use spells like Shield, Heal and Dispel Undead. Any spell user has a spell counter so spells must be used carefully and if it reaches Zero then extreme caution is needed and more must be found.

Inside the Labyrinth there are many traps, treasure and beasts to kill. There is a combat system where you enter commands to use a weapon, spell or even run away if there is room. The computer will keep you updated on every stage of combat on your health status. If you die then you must start at the entrance to Mt. Elk once more.

Velnor's Lair is a text adventure with the screen describing your location and you enter commands to play the game.