Dungeon Keeper is a strategy game where players build and manage their own dungeon while fending off invading heroes. The game utilizes an isometric perspective, allowing players to zoom and rotate the view, and features a unique mouse control system represented by a hand for selecting rooms, casting spells, and interacting with dungeon elements. Players start with a Dungeon Heart and a workforce of imps to dig tunnels, capture enemy rooms, and manage resources like gold and food. As players progress, they unlock new rooms and technologies, enhancing their dungeon's capabilities.

The gameplay involves strategic planning to eliminate heroic foes and rival dungeon keepers, with each level presenting a new region to conquer. The narrative is enriched by the Mentor's commentary, adding a darkly humorous tone to the destruction of the idyllic lands. Dungeon Keeper offers a rich ecology where creatures have natural rivalries, adding depth to gameplay as players must manage not only their resources but also the relationships between their monsters.