The game takes place in the Dungeons & Dragons Forgotten Realms campaign setting and the region of Icewind Dale, and uses the 2nd edition ruleset.

Icewind Dale's gameplay operates on a similar basis to that of Baldur's Gate in that it incorporates a modified version of the Advanced Dungeons & Dragons 2nd edition ruleset in which the rules' intricacies are automatically computed; the game keeps track of statistics and controls dice rolling.

Combat has a real-time as opposed to a turn-based system, though with the option of pausing at any time so the player can give the party orders which are carried out when the game is resumed.

[2] Each new character created requires the player to provide them with their name, gender, race, class, and alignment, and then determine their ability scores and weapon proficiencies.

Asking for their help to discover the source of the evil, the adventurers begin by searching the Vale of Shadows, an area containing Kuldahar's crypts, due to rumours of undead creature sightings.

Reporting this back to the druid, Arundel instructs the group to retrieve an ancient scrying item called the Heartstone Gem, so that he may discover the source of the evil more quickly.

After killing Yxunomei and retrieving the gem, the party return to find Kuldahar under attack by Orogs, and Arundel mortally wounded by a shapeshifter disguised as the archdruid, who taunts them before vanishing.

The true Arundel advises the party to take the Heartstone to Larrel (Michael Bell) at the fortress of the Severed Hand, the only one capable of using it now, before dying from his wounds.

Poquelin immediately used its power to help him amass an army to conquer the lands of Icewind Dale, until Yxunomei's activities around Kuldahar led to the formation of Hrothgar's expedition.

Seeking to stop it, the demon had his frost giant minions crush the expedition, but did not count on the adventurers' survival being a problem until they recovered the Heartstone Gem, forcing him to eliminate Arundel.

After freeing the surviving villagers, the local cleric of Tempus, Everard, informs the party that Poquelin is going after Jerrod's Stone, a mystical object housed under the town's temple, which acts as a seal on a portal to the Nine Hells of Baator.

Gaining entry into the demon's crystal tower that enveloped the temple, the group discover that Poquelin's true intention was to reopen the portal contained within the Stone, allowing him to conquer the North with an army of devils at his command.

Although he successfully achieves this, Everard, having shunned the tale of Jerrod's sacrifice until finally understanding what he did, throws himself into the portal and seals it off at the cost of his life.

The party then fights Poquelin in his true form as the devil Belhifet, and manage to defeat him, banishing him to the Nine Hells and escaping the tower as it collapses.

(see Baldur's Gate: Siege of Dragonspear) Icewind Dale is based on the BioWare Infinity Engine, featuring pre-rendered backgrounds and sprite-based characters displayed with an isometric camera perspective.

[17] According to GameSpy's Allen Rausch, "Icewind Dale was a fun dungeon romp that can hold its head up high, even if it can't match its big brothers".

[34] In the United States, Icewind Dale debuted at #4 on PC Data's weekly computer game sales rankings for June 25–July 1, 2000,[35] following the title's release on the 30th.

[48] According to Chart-Track, Icewind Dale was the United Kingdom's best-selling computer game for its debut week, breaking Diablo II's three-week streak in the region.

[61] During the creation of Heart of Winter and Trials of the Luremaster, Black Isle developed ideas for a full sequel, Icewind Dale II.

[67] A remake of Icewind Dale was developed by Beamdog's Overhaul Games and published by Atari for Windows, OS X, Linux, Android, and iOS in 2014.