Alice's Tea Cup Madness has a plot which is based loosely on the novel Alice in Wonderland and is somewhat similar to Diner Dash: Flo on the Go: Alice is getting bored with a book with no pictures when she sees a white rabbit with a watch running past her. In a curious attempt to follow the rabbit, Alice falls into a hole and is led to Wonderland. The rabbit, being stopped and told about Alice's will to get out of that world, points out to Alice that a trip back home can cost plenty of money and recommends her to set up a tea shop for more money.
The gameplay of Alice's Tea Cup Madness bears a lot of resemblance to the Diner Dash series. There are a total of 6 places, each of which has 13 levels. As Alice, players have to serve customers with the suitable food or drinks (sometimes the food or drinks have to be in the suitable dishes) before they run out of patience and walk away (which decreases the score). There are usually four things players need to deal with their customers: provide seats, prepare the food or drinks they demand, serve them and get the money. At the beginning of each level, players are given the minimum score (compulsory) and expert score (optional) to get. Customers, who are all based on the characters in the novel, are various, with different level of patience; some even have their unique behavior. After a customer is served and leaves, the chair they were sitting on will turn into the color of his or her clothes; giving that chair to a customer with the same color will increase the score.
There is a time limit in each level. When the time runs out, no more customers will come. The final score, plus the score in the previous levels, will be classified as money, which players can use to upgrade their stuffs at the end of each level. At the next level, the score will be reset to 0 (which doesn't affect the money). Sometimes, players will have to complete a mini game instead of serving the customers. As players proceed, they will meet Walrus, who has the duty to send angry customers away (which is followed by a decrease in score).
The graphics are in 2D. Players' process is automatically saved. The game offers players a high score board and a medal board recording players' achievements of certain goals.