This is the third game in the row of Philips' titles set in Zelda universe. In this game, you play the princess Zelda herself. The evil Gannon has captured and imprisoned the brave hero Link. In order to save him, Zelda has to venture into Tolemac, an uncharted southeastern region of the land of Hyrule, and to collect seven celestial signs, which is the only way to defeat Gannon.
Unlike the two previous Zelda games for CD-i (which were platformers), Zelda's Adventure returns to the traditional top-down view of the series. You navigate Zelda over the world map, visiting towns, talking to townspeople for clues, and descending into dangerous dungeons. You can equip swords, shields, and various kinds of gear. The combat is entirely action-based.
The reason Nintendo licensed their Zelda characters to Philips Interactive was because Phillips and Nintendo were co-creating a CD-ROM add-on for the SNES. The contract between them allowed Philips to create games with the Mario and Zelda characters. Although Nintendo never released a CD-ROM add-on for SNES, they did have the legal contract with Philips, so Philips was able to create three Zelda-based games and one Mario-based game.