Arthur's Birthday is an interactive storybook adaptation of Marc Brown's original picture book. Arthur is very excited about his upcoming birthday party, but as he invites all of friends to it, he makes the unfortunate discovery that Muffy is having her birthday party the same day, which puts all of the kids into a dilemma. However, on the way home from school the next day, Arthur and Francine devise a plan to fix the situation.

As with other Living Books, the game offers the option of simply reading the story, or reading each page and then letting the user interact with the pictures. Clicking on the various objects reveals all sorts of surprises. In 1997, the game was updated and given a second version that upped the screen resolution and added a Pin the Tail on the Donkey minigame and a scavenger hunt game called The Great Gift Mystery.