This is an action game in which players assume the role of a large stuffed teddy bear named Naughty Bear, who lives alone in a hut on Paradise Island. Players are prompted by an unseen narrator to interact with other teddy bears, and to perform assorted "naughty" tasks: scaring other bears in order to drive them insane; using weapons (pipes, machetes, baseball bats, pistols, ray guns, etc.) to attack and kill pedestrian, zombie, alien, and paramilitary teddy bears; and sabotaging or destroying other bears' parties, tools, and daily activities. Damage is indicated by squeals and clouds of fluffy cotton. Though the art style is overtly colorful and "cartoony," players have the ability to finish enemies off (e.g., slamming heads with car doors, breaking necks, stomping, impaling) and drive teddy bears to commit suicide (e.g., self-stabbing, shots to the head). Throughout the game, the narrator provides guidance and encouragement with the intent to be humorous; for example, "Awesome Electrocution," "Defluffication," and "When a bear becomes insane, you can run up close to him and perform an outrageously naughty move . . ."