Folklore is an action role-playing game, where players control characters in a third-person view to both explore their surroundings and engage in combat. From the start, players have a choice to play the game as either of the two lead protagonists, the young woman Ellen or the journalist Keats, both having different yet intertwining plots and play styles. The game is split into two worlds, the real world set in the small sea-side Irish village of Doolin and the more fantastical Netherworld inhabited by folk creatures and spirits.