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An evil snowman has kidnapped Santa's reindeer and elves, and Christmas would be lost if they are not saved. Santa sets out on to rescue them by using his many magic powers. Along the way he will be aided by his evil twin the Anti-Clause.
In Daze Before Christmas you control Santa throughout a series of platform levels. In each level your goal is to rescue the various elves and reindeer by opening boxes and cages they are trapped in. Santa has magic powers that will allow him to turn enemies littered across environments into Christmas gifts, which he will then collect. Also Santa has the ability to open up different gifts to find powerups which will aid him, but gifts will sometimes contain items that can harm him such as bombs. One of the powerups that is most prominently featured is Santa's ability to turn into the Anti-Clause, and this power up is gained by finding a cup of coffee. As the Anti-Clause you are invincible and able to eliminate enemies on a level, but you are also unable to open gifts during this transformation.
When Daze Before Christmas was released there had been very few Christmas games commercially released. Not many copies were of the game were printed making it an extremely limited release. If sought after, the game could come with an extremely high asking price.