In Mystic Towers, the player takes control of an old and rather eccentric wizard Baron Baldric, whose task is to venture into the twelve Towers of Lazarine and clear them of monsters. The game is a follow-up to Baron Baldric: A Grave Adventure. It is primarily an action game with puzzle-solving and role-playing elements.
Each tower consists of 45 rooms (9 rooms on each of the 5 floors), 15 monsters, and 1 monster generator. The objective is always the same: defeat all the monsters, deactivate the monster generator, and find a way to escape from the tower. The player navigates Baron Baldric through isometric environments, fighting monsters in action-based combat, jumping, avoiding obstacles, and collecting various items. Some of the items are required to solve a puzzle (such as unlocking a room), while others relate to the RPG elements in the game.
Along with the usual HP (health) bar, Baron Baldric also has a food and a drink meter, which means that the player has to find edible products and beverages to prevent the hero from dying. The old wizard mostly relies on spells in combat; these can be purchased from vending machines. In addition, Baldric collects points when he finds treasure; these points eventually add an extra life, up to nine in total.