Dynamite Headdy is an engaging platform game where players control Headdy, a puppet with a unique ability to detach his head for combat and puzzle-solving. The gameplay revolves around using Headdy's head to attack enemies, retrieve items, and navigate through various obstacles. Players can also grab a HangMan to elevate themselves on platforms or manipulate the environment. The game introduces a variety of special head types through HeadCases, each offering different offensive and defensive capabilities, enhancing the strategic elements of gameplay.

The game also includes side-scrolling shooter stages that allow players to switch between three distinct Head Types, adding further variety to the experience. Each head type has its own strengths, such as increased attack power or defensive abilities like invulnerability. With time limits on certain heads and the option to cancel changes, players must think critically about their approach to each level. Overall, Dynamite Headdy offers a rich and dynamic gaming experience for action game enthusiasts.