Some of the tasks in the game have multiple solutions, though the game may grant the player less points if he chooses the simpler one. Since some of those are not crucial to completion, it is quite possible to finish the game without having attained the full score. The game awards the player points for most of the actions he makes Graham perform. Some of the puzzles rely on fairy tales, and a good knowledge of those makes them easier to solve. In order to complete the game, the player has to procure certain items and use them in correct situations or with specific characters. Much of the kingdom is accessible to Graham from the beginning, and there are only a few restrictions imposed on traveling. The game world consists of a cyclic outdoor area with places of interest (houses, characters, etc.) that must be found through exploration. Graham can be moved around with arrow keys and perform various actions when the player types commands, normally consisting of noun and verb combinations (e.g. The player character can also be obscured from view when hiding behind an object, is subjected to gravity, and has different animations for actions such as picking up an item, falling, swimming, etc. As opposed to earlier graphic adventures, the player is able to navigate the protagonist on screen in eight directions, creating an effect of three-dimensional exploration. King's Quest is commonly considered the progenitor of third-person-perspective adventure games.

During his travels, Graham will meet characters that will either help or hinder him. If Graham takes these treasures back to the royal castle, then the ailing King Edward the Benevolent of Daventry will hand over the crown. Sir Graham is a brave knight who is sent on a quest to retrieve three treasures that were stolen by deception and stealth: a shield that protects its bearer from invaders, a mirror that foretells the future, and a treasure chest that is forever filled with gold.

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