Army Men: Soldiers of Misfortune is a 3D third-person shooter and spin-off of the Army Men series. Assuming the role of a boy named Timmy, whose tan toy soldiers have begun a war against his green toy soldiers, the player must enter the battle against the tan soldiers by shrinking to their size and fighting them across the house.

The game offers five missions in which Timmy has to rescue allies, disarm threads and fight off the enemy. Sometimes, Timmy will be able to enter and use vehicles like tanks, jeeps and planes. Additional health and weapon pick-ups can also be found through the house.