In Mike: The Magic Dragon the player takes control of Mike, a baby dragon, who was kidnapped by professor Dragan Drachenklau. The purpose of his evil deed: experiments. Fortunately Mike manages to escape - now he only needs to find a way out of Drachenklau's castle... This game is a platformer with non-scrolling levels. Mike can only use the exit of a level when he finds the password to deactivate the barrier and a key to unlock the door. The password is gained by touching three letters in the right order; the key requires collecting all crystals. The levels consist of platforms, ladders (sometimes moving) and deadly enemies which should be avoided. Another way to die is falling too far, but if Mike misjudges a jump he can use a limited supply of parachutes.