Set in an Arabian Nights-esque world, the player assumes the role of Sinbad the Sailor, and is commissioned by The Princess to rid the land of the Dark Prince.

Gameplay alternates between an open-ended world map, action sequences, and dialog, where the player engages other characters and further conversations and relationships.

In cities, crew members can be hired, while in the deep forests there are shamans and Gypsies to talk with about magic and potions.

Computer Gaming World stated that the Amiga version of Sinbad and the Throne of the Falcon was a "brilliant" tribute to adventure films, but also considered to be uneven as well.

It praised the audio and some of the graphics but said that the game's attempt to combine arcade, adventure, and strategy was not completely successful, and concluded that it was "light, entertainment fare, at best".