Most levels in Three Dirty Dwarves play in a typical beat 'em up format: players must advance the characters to the end of the stage, defeating any enemies which block the way.

[6] To escape, the children play their favorite role-playing game and lead the party - a trio of slow-witted but heroic dwarves - to a gateway into the real world.

[7] A Next Generation critic remarked that the side-scrolling beat 'em up genre was becoming tired, but that Three Dirty Dwarves, while not genuinely innovative, "offers just enough new spins on the tradition to make it a worthwhile venture."

[8] Major Mike of GamePro said the jumping and three-dimensional gameplay can be awkward, but aspects such as the three-player mode and humor "make this game something special.

"[5] Rob Allsetter of Sega Saturn Magazine gave Three Dirty Dwarves one of its few negative reviews, calling it "a very irritating and mundane platform game".