The multiplayer modes include Dungeon Master, in which a 'DM' controls the traps and battles set for other players in the dungeon, and a range of game types such as hunting for treasure or a simple death match battle between players. Various 'henchmen' may join the hero during the journey, but their functionality as party members is limited, as they cannot level up, have no inventory, and only follow general commands. Unlike other RPGs that utilized this system, Neverwinter Nights allows the player to fully control only one character. Combat is handled in real time, and is similar to that of Baldur's Gate series, allowing the player to pause in-battle to issue orders. The game utilizes 3D graphics with a zooming function and free camera rotation.

Neverwinter Nights is a role-playing game based on the third edition of the Advanced Dungeons & Dragons rules. It seems that an evil cult is behind the infestation, and the hero must find out what its ultimate goals are, and eventually save the city. However, the matters become more complicated when the protagonist is attacked by mysterious assassins. Lady Aribeth summons an adventurer, who teams up with her fiance Fenthick Moss and his friend Desther to capture four monsters which are needed to prepare the cure.

A plague known as the Wailing Death is terrorizing the city of Neverwinter.

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