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The "cousin" of Sega's RPG Phantasy Star II, Sword of Vermilion is a role-playing game with action combat in a medieval-fantasy setting.

A third-person, top-down perspective is used to move around towns. A first-person view is used for overland travel outside of towns. A third-person side view perspective (a la Double Dragon or Final Fight) is used for the combat sequences.

The player is cast in the role of an ordinary young man who discovers that he is really a prince, and the son of the deceased good King Erik. He is charged with traveling around the land of Excalabria to collect the eight magic Rings of Good, defeating a number of boss enemies on the way to confronting the evil King Tsarkon.