Building on the basic gameplay and visual ideas of Ultimate's Atic Atac, Wizard's Lair stars an explorer named Pothole Pete, who is stuck in the Lair unless he can find all four pieces of the Golden Lion. The game is viewed slightly top-down, with indoor rooms bordered by line drawn vectors rather than the fuller jungle graphics.

The pace of the game is quite fast, and the challenge of the action elements is increased by not having infinite weaponry. The route through the game is non-linear, with multiple exits and secret rooms commonplace. Although the screens always contain a particular area, rather than the sections of different areas viewed in Atic Atac (meaning that the player would often have to work out how to reach some sections via other screens), a river is a central aspect of the layout, delimiting some sections of the screens.