SteamWorld Dig is a 2D platform game centered around mining for resources and ores beneath the old Western town of Tumbleton. Players control Rusty, equipped with a pickaxe, and can upgrade tools for digging as they progress. In addition to managing health, players must collect coal for light and water for special abilities.

Players navigate through platform elements, running, jumping, and encountering foes while primarily focusing on mining to unearth secrets. By deconstructing the game world, players create platforms and collect resources to exchange for cash. The randomized mines ensure a fresh experience with items and treasure in new locations, offering a self-destruct function and ladders for tricky situations.

As players delve deeper, they face diverse enemies with unique attack patterns and weak spots across multiple worlds with distinct environments. Dying incurs a reparation penalty, respawning players on the surface but allowing them to reclaim accumulated loot.