During battles, the player can either choose to shoot with Edge's gun, or use one of the many special attacks of the dragons. In towns and some dungeons Edge can also move on foot. Edge moves around through the game's fully 3D world by riding the dragon.

There is no party in the game: the player only controls Edge on the back of his dragon, who is in fact the playable character in battles. Panzer Dragoon Saga is set in the same universe as the other Panzer Dragoon games, but differs from the rest of the series by being a role-playing game with elements of a shooter. But the Empire is also after Crayden, so there appear to be at least three sides in the conflict - or are there more? Nobody helps him but his faithful dragon. Coming into contact with an ancient dragon, Edge begins to roam the world, determined to find Crayden and avenge the death of his comrades. He then witnesses the murder of his captain and other soldiers by Crayden, one of the Empire's officers. During the excavation works, Edge encounters a mysterious young girl. The Empire has recently ordered some excavations at ancient ruins, trying to discover the secret of an old technology that is much superior to that of present time. Edge is one of the soldiers in the service of the mighty Empire.

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