Mutant Beach takes place on a small tropical island. Someone has stolen the nose of the Great Idol Mohawk. This of course makes the great idol very angry and he releases the twelve idols of the Idol City who turn the island upside down and mutates its inhabitants into strange creatures. Only one of the islanders is lucky, Native Nick, who is out fishing when he finds a note in a bottle informing him what has happened. Nick is now the only one who can save the village. To do so he has to retrieve the Nose and return it to Mohawk.
Mutant Beach is most similar to an adventure game although with some action elements. The player takes control of Native Nick and gets to move around the island with either keyboard or mouse controls. To get help in retrieving the nose, the player has to talk with the idols and ask what they want in return for their help. This can be either gifts or magic spells. Most of the game involves searching for and collecting these items. Sometimes a magic spell is needed to retrieve the items. The mutants are not all very friendly and might be dangerous or require magic to overcome. The player also has to watch out for the mutated islanders who tries to steal items from the player's inventory. When they attack the player can protect himself by bonking them and they will then be stunned for a short while.
The game has a time limit. The player has to complete it in 30, 60 or 90 minutes depending on his choice. If he fails to do so Mohawk will turn him into a rock.