Pyramid Magic is a platform puzzle game that casts the player as a young explorer seeking a treasure hidden deep within a pyramid. Each stage contains blocks, treasure boxes, and an exit which is blocked by a ghost. The explorer can kick and destroy the blocks as well as carry them, and can also move through small openings by carrying blocks into them. However, if he falls even one square downward, the block will crush him and the stage must be restarted. He must collect the contents of each box in order -- the last contains an item which will dispel the ghost -- and reach the exit without either trapping or crushing himself with the blocks.

After clearing each stage, a time bonus is awarded, and an extra life is earned for every 3000 points. Every five stages, the player receives a password with which to resume play, and is also allowed to skip two stages. There are a total of 35 puzzles to solve.