For those who have not seen the movie of the same name or have not read the novel by Philip Pullman, players take on the role of Lyra Belacqua and try to save her friend Roger from the nefarious kidnappers known as the Gobblers. Alongside Lyra travels her daemon, Pantalaimon, who is the physical embodiment of Lyra's soul, and occasionally a polar bear named Lorek comes to accompany her.

Lyra possesses the alethiometer, the golden compass of the title, which can answer any question she asks. The plot is very well-tied together, and players are often updated on the continuation of the story with short videos from the film of the same name.

The gameplay is ideal for the whole family, featuring exploration in large environments and many challenges, such as hiding under furniture.