The player assumes the role of a small, largely unseen character who possesses the fictional "Little Inferno Entertainment Fireplace", which they use to incinerate various objects, such as toys and appliances, to keep warm (necessary due to a seemingly unending drop in the game world's temperature).

There is no scoring system, nor are there any penalties or time limits imposed on the player, allowing them to freely experiment with burning any combination of objects.

By burning new Combos, the player can earn stamps which speed up shipping new objects, along with a small amount of bonus money.

[citation needed] In Little Inferno, the story is told through letters from various characters, primarily the player's eccentric neighbor, Sugar Plumps.

Sugar Plumps, who becomes progressively more disturbed as the game goes on, requests items for burning and eventually reveals that she intentionally set her house on fire.

Her disappearance leads to mysterious letters from an apparition resembling her, prompting the player to burn certain items, ultimately causing their house to explode and escape into a new phase of gameplay.

The second part of the game transitions to a side-scrolling adventure, where the player explores Burnington and meets characters like the postman and the CEO of Tomorrow Corporation, Miss Nancy.

[7] Inspired by the "Yule Log" TV program, the team aimed to create a game that started with an underwhelming premise but turned out to be surprisingly engaging.

[8] The goal was to make the game unpredictable and immersive, allowing players to discover the gameplay without knowing where it would lead.

The jingle is used in-game in a fictional advertisement for the Little Inferno Entertainment Fireplace, which itself is featured in promotional trailers for the title.

[34] Kotaku's Stephen Totilo admired its simplicity, describing the game as both "quaint and bold" with an enduring, impactful presence.

[37] Similarly, Tyler Ohlew from Nintendo World Report praised the Wii U version for its originality and open-ended nature, noting that it encouraged players to use their imagination and creativity.

[32] Reviewers pointed out that certain aspects, like the repetitive nature of the mechanics and the delays between purchasing and receiving items,[39] could feel tedious.