Naughty Bear is a third-person action game with a theme similar to Happy Tree Friends or Conker's Bad Fur Day, where cute, plushy animals act more violently than they usually do - mixing dark humour with over-the-top violence. Players control the eponymous bear to gain as many points as possible by doing naughty things, generally a euphemism for killing other animals and destroying their possessions. The game is set on Perfection Island where teddy bears live happily. Naughty is somewhat of an outsider because of his demeanour and he is the only one not invited to the birthday party of Daddles. He tries to go anyway, crafting a present for the occasion, but his gift is ridiculed by two other bears, Chubby and Giggles, and he sulkily goes back home, plotting for revenge.

The game takes place over the course of seven episodes, further divided into separate missions. Every mission has several quests to be completed, such as killing a specific bear, beating the time limit, collecting gifts, or staying undetected (Naughty Bear can hold a branch with leafs in front of his face to hide). Completing these assignments and killing other bears is rewarded with points, which opens up bridges or gates to go to new areas. That way in-game trophies (bronze, silver, gold) can be gathered, based on the amount of points, to open up new levels and unlock additional costumes, improved abilities, and badges. If the naughtiness