Everyone blamed the jester Malcolm for allegedly turning everyone to stone and killing the King and the Queen of Kyrandia. Their son Brandon eventually turned Malcolm himself into stone. However, a thunderbolt strikes the jester, liberating him from his predicament. Now it's his turn to tell the world his version of the truth, whether in his usual mischievous manner or by becoming a nicer person.

Malcolm's Revenge is the third entry in the Legend of Kyrandia series and, like its predecessors, an adventure game focusing on inventory-based puzzles. The basic gameplay is similar to the previous entries: the "smart cursor" is responsible for all the actions in the game - taking, using, talking, etc. During conversations, it is possible to control Malcolm's level of truthfulness as well as his "good" and "bad" attitude. Many puzzles in the game have multiple solutions, though the main story remains unchanged for the most part.