King Taskan IV celebrates the end of a civil war. The valiant warrior Hype is given the Sword of Peace for his heroic deeds and his loyalty to the throne. However, a mysterious black knight named Barnak appears and casts a powerful spell on Hype, turning him into a statue and sending him two hundred years into the past. The magician Gogoud brings Hype back to life, and the brave knight has to figure out a way to return to his own time, defeat Barnak, and marry his sweetheart Vibe.

Based on the medieval castle toy series from Playmobil, Hype: The Time Quest is an action game with puzzle-solving and light role-playing elements, similar in style to 3D installment of the Zelda series. Hype primarily fights with close-range weapons, though he can also cast offensive spells in three elemental categories. Hostile areas occupy the largest portion of the game; Hype will explore dungeons, face boss monsters, and will have to hunt for quest items needed to advance the story. Some of the puzzles revolve around time-traveling concept.