The Lucky Dime Caper Starring Donald Duck

The game is a side-scrolling platformer. The gameplay follows the same pattern of Castle of Illusion Starring Mickey Mouse , which was released for Sega consoles a year before, but unlike Mickey , Donald can attack enemies by hitting them with a hammer or throwing discs. He can also attack faster by collecting star items. The game consists of seven stages: the Northern Woods, the Great American Forest, the Andes Mountains, the Tropical Isles, the Pyramids and the South Pole, followed finally by Magica's Castle.

Despite the Master System and Game Gear being very similar systems, there are some differences between the two versions of the game: While following the same storyline, the intro sequences are different. The level select screen on the Game Gear does not have any music. The layout of platforms and enemy positions are different. In the Game Gear version, bonus items are pre-placed in the level, whereas in the Master System version they are only obtainable by defeating enemies.

The Master System version has a timer while the Game Gear version has not. The Master System version allows players to backtrack, while the Game Gear version does not. Collecting five stars in the Master System game gives players limited invulnerability, while the Game Gear version gives additional points. When hit by an enemy, Donald loses his hammer weapon in the Master System version; it can be obtained as bonus item after defeating an enemy.

The hammer is not lost when hit by an enemy in the Game Gear version.