Tears of the Dragon is an exciting fantasy boardgame that pits two players against each other in a quest to find lost wisdom so that they can free the princess from her curse and win great power. Players assume the role of one of two great warlords — Lord Forseti and Lord Gorganun. Forseti has more powerful units; his armies are the greatest in the world, and they fight much better than Lord Gorganun's. However, Lord Gorganun has a magical edge. He controls more powerful wizards than does Lord Forseti, and he can gain allies in the magical fairy people known as the Cadmin and the mighty dragon, Terromax. What Forseti has in military strength, Gorganun makes up for in total available units and magical prowess.

Both warlords have mounted and foot soldiers at their disposal as well as wizards. These magicians cast spells that can aid in combat or in movement, and they can assist in finding the lost bits of wisdom that will enable the player to win the game.

Each player moves his or her forces around the board, attempting to explore ruins. Each ruins must be explored by a wizard or a leader to acquire the wisdom that they contain. They also hold spells that wizards can add to their arsenal, making them more powerful. Once a player has explored enough ruins to gain the requisite knowledge, he or she must sail some of his or her forces to the lost island where Erynmil is imprisoned. There, he or she tries to convince the princess that the warlord is wise enough to be her suitor and win the game.

Tears of the Dragon combines the best aspects of a race game and a strategic movement one. While the goal is to get to all the ruins necessary, each side will attempt to intercept and defeat opposing forces, blocking them off from key locations. Eliminated leader and wizard pieces cannot be rebuilt, putting a premium on well-executed military strategy.