Similar to its predecessor, the game is a 2.5D side-scrolling platform game. Protagonist of the Oddworld series Abe returns as the primary character, with the goal of rescuing his fellow Mudokons from slave labor and exploitation by the brutal Glukkons. The game features substantially revised gameplay mechanics incorporating gameplay elements from both Oddworld: Abe's Exoddus and Oddworld: Munch's Oddysee.
One new mechanic is an inventory to go along with a new looting and crafting system in which Abe can find various items within interactive objects, or pickpocket them from enemies and craft and customize different weapons, such as a smoke bomb or a flamethrower; one such lootable item is duct tape, which Abe can use to "apprehend" enemies without killing them. Moolah can also be collected with which to purchase items for the inventory or to open cash gates. Abe is now capable of performing a double jump, allowing him to get across large gaps. A new health meter tracks how much health Abe has left, and can be recovered either over time, from rescuing Mudokons or by collecting often-hidden Royal Jellies, the latter of which will extend the meter. Certain hazards will still kill him instantly however regardless of how much health he has left.
The Quarma system now has an additional tally that counts the number of enemies killed, therefore encouraging the player to either kill or spare enemies, though this doesn't count against the Quarma rating. The GameSpeak feature has been simplified to greeting other Mudokons and telling them to wait and functions similarly to that in Munch's Oddysee, with simply tapping or holding the corresponding button causing Abe to speak to either one or all Mudokons following him, as well as "Aggro" and "Passive" commands that change his followers' mood similarly to that game's "Jump 'Em!" command (using any items given to them from the inventory). The possession ability has been reworked to function similarly to its Munch's Oddysee incarnation, albeit it now uses a "chi" meter that limits the amount of time for Abe to move it to his nearest target with the amount of "chi" extended based on how many Mudokons are following him at the time; when dispossessing enemies, he can now either cause them to explode or temporarily knock them out. Mudokons now follow every move Abe makes when they follow him, including jumping and hoisting, with running and sneaking also adjusting their voice and movement volume accordingly. Enemies are now capable of shooting at Abe or other Mudokons at different angles and can use various weaponry that cause various amounts of damage. They can also switch these out with stun guns, which can be utilised by the player to harmlessly knock out other enemies. While the game is mostly linear, the levels are often quite large and contain many secret areas, rewarding the player for thoroughly exploring them. Each level features a badge system for completing specific tasks, such as looting a specific number of interactive items, finding a specific number of secret areas, or apprehending as many enemies as possible.
The Enhanced Edition features two version-exclusive bonus levels; Vykkers Labs for the Xbox versions and Toby's Escape for the PlayStation and Epic Games Store versions.