The only characters from the original game to return as main characters in this game are Spyro, the game's protagonist, and Sparx, his dragonfly sidekick. The power-up can grant invulnerability or the abilities to fly, supercharge, super flame, breathe ice, or super jump to reach high up areas. In addition, each level has a power-up gate, activated after defeating a specific number of enemies in a level, which grants Spyro a temporary super-ability. Swimming lets Spyro dive underwater to reach submerged treasure and hidden tunnels, climbing lets Spyro climb up certain surfaces, and the headbash lets Spyro perform an overhead smashing attack which can break rocks and certain cages.

As well as opening portals or granting access to certain areas, Moneybags also teaches Spyro three brand new abilities over the course of the game. Gems gathered throughout the game are required to pay fees Moneybags charges in order to progress through the game. These orbs are required for opening some of the portals to certain levels, as well as progressing through the third hub world. Each level also contains a certain number of orbs, which can be earned by completing secondary tasks for particular NPCs, such as lighting a series of lamps or protecting characters from attacks. In order to progress through the first two hub worlds, the player must acquire a talisman from each realm, which is awarded for reaching the end of the level, before facing the boss of each world. The game is split up into three main hub worlds containing portals to various realms. Bottled butterflies will both completely restore Sparx's health and give Spyro an extra life. His health is indicated by the color of his dragonfly partner, Sparx, who can replenish his health by eating butterflies. Players control Spyro the Dragon as he fights against various enemies and obstacles using his flame breath, charge attack, and glide abilities.

Spyro ripto's revenge