Panzer Dragoon Mini is the Japan-only 8-bit version of Sega's popular 32-bit rail shooter, but due to (massive) hardware limitations, the game has more in common with other classic Sega game, Space Harrier. Taking further away from the original games, there is no rider and the game lacks any plotline.

The player starts by choosing one of three dragons, and from there must shoot at incoming enemies (although for most time, just avoiding incoming fire is an easier way to progress in the game). At the end of the level (each with two bosses), a password appears and allows the game to be resumed later.