The game follows Shaggy and Scooby as they find clues and trap pieces to complete the levels. Velma, Fred, and Daphne assist them.
When Shaggy is scared enough times, he leaves the area and the player must restart. The fright can come from simple things such as the opening of a mummy's case or complex dangers such a moving dinosaur display hitting the player. 'Courage' can be restored by finding food to eat in a cafeteria or in Scooby Snacks lying on the ground.
A familiarity with the television show helps the player, as in one instance, the player must hide inside a two-dimensional painting to escape a villain.
Villains are Black Knight, Snow Ghost, The Witch Doctor, and the game exclusive Ghoul King.