Cornelius the Elf was living peacefully in a forest with his sweetheart Elisa. However, an evil creature known as Necrilous the Not-Very-Nice kidnapped Elisa and disappeared with her. Cornelius must embark on a perilous journey to rescue the love of his life.

To reach her, you must traverse enchanted woods, underground mines, jungle swamps, and snow-capped peaks, where bizarre, villainous creatures and devious puzzles will test your mettle every step of the way!

Fortunately, your magic ring can cast many spells, increasing in power as you tread deeper into the mystical lands of goons, goblins, and demons. You can even control some of the background game features, helping you get to where you think you should be. Numerous secret areas lie deep within the forest, where vital clues can aid your quest, but beware ... you own ghost may materialize to haunt you!

Elf is a platform action game with light adventure elements. Cornelius is armed with a ring that fires projectiles at enemies. During the course of the game he can collect herbs and animals (called "pets"), which can be traded in shops for upgrades such as stronger attacks, extra speed, magic spells, or devices such as a flying machine. In addition, certain segments require the player to communicate with NPCs populating the game world and fulfill their requests, usually by obtaining specific items for them.

The game keeps track of the player character's behavior, assigning the player a rating and affecting the ending scene depending on the protagonist's actions, which mainly involve killing or sparing the lives of the game's non-hostile characters. The protagonist's health is measured in hearts and lives, which can be replenished or increased. The player can save the game between stages.