Usagi na Panic stars Ramy, a cute bunny-eared female warrior. There isn't much of a story in the game; innocent people and animals require Ramy's protection, and her first mission involves infiltrating a ship called "Pen-Pen", populated by hostile penguins who have gotten themselves into trouble.

The gameplay is traditional side-scrolling action with platforming elements. Ramy's default weapon is a short sword; she can execute dash attacks which damage the enemy but increase her vulnerability. Ramy can also jump (albeit rather slowly) to access higher platforms and avoid attacks. Bombs can be set in order to trap the enemies. The bunny-girl's health is measured (logically) by carrots; eating said vegetable or other food dropped by the enemies increases a unit of her hit points.