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Hiro Miyamoto, the leader of the Miyamoto clan of martial artists, meets one day a stranger who brings bad news. Kage Mishima, the archenemy of the clan, has stolen the magical sword Daikatana, which allows the one who wields it to bend the fabric of time and change reality. In addition, Mishima's minions kidnap Hiro's friend Mikiko. He must rescue her, travel to different time periods, and put an end to Mishima's ambition.

This version of Daikatana is quite different from its PC and console counterpart, being a top-down action game with puzzle-solving, somewhat similar to Zelda games, though with less character customization and more focus on dungeon-crawling. Two companions eventually join Hiro; some of the puzzles can only be solved with their aid. The dungeons, which represent locations of different cultures and time periods, usually conclude with boss fights.