The game has five rounds. Each round has unique scenarios and each has a different song by Michael Jackson for the instrumental background music. The rounds are as follows:

1. Cavern: “Bad”
2. Amusement Quarter: “Smooth Criminal”
3. Night Street: “Beat It”
4. Graveyard: “Another Part Of Me”
5. Evil Fortress: a reprise of “Bad”

If you complete all five rounds and end the game, the song that will play for the ending will be “Billie Jean”.

Each player’s Michael Jackson character looks identical but wears a different color: white left player, red middle player, and black right player.

During each round, Michael must fight off each and every one of Mr. BIG’s henchmen as well as the deadly enemy machines by shooting them with his magical energy or by using his Dance Magic. Some enemies take only one shot to defeat but some of them take several shots to destroy. The longer you hold down on the fire button, the greater the amount of energy Michael can shoot. If Michael uses his Dance Magic, all the enemies on the screen will dance along with him and then they will all be eliminated. However, you are usually only given two Dance Magics at a time.

When you begin each game, you get three lives and one Dance Magic. Everytime Michael is hurt, the energy meter drops. If Michael runs out of energy, a life is lost. If you run out of lives the game ends, but continuous play is available.

During each round, as Michael fight off the enemies, he will find some of the children who are held captive. He must touch each of them in order to free them. Some children give Michael special items such as a Dance Magic or some extra life-energy. Michael has to rescue all children in each and every round.

Later in each round, Michael’s pet chimpanzee Bubbles will be seen moving about and if he touches Bubbles, he will turn into a powerful robot called Moonwalker. After Michael has become Moonwalker, he will be able to shoot lasers and fire missles. Michael must defeat every boss enemy at the end of each round in order to proceed to the next.

At the end of the fifth round, Michael must defeat Mr. BIG and his Death Machine. If Michael gets past this round, Mr. BIG’s evil schemes will be crushed and he will be beaten. After that, Michael will turn himself into a spaceship and escape from the Evil Fortress as it explodes. Afterwards, the game ends.