Shanghai Dragon is a 3D rail shooter, similar to The House of the Dead or Virtua Cop. The action takes place in 1937 and the player takes the role of Jackie Hua. He is a member of the Chinese resistance, fighting against the Japanese occupation. The hero walks through the city without player input and the player only has to shoot enemies. Sometimes he has to save some civilians. They give him first aid kits, weapons and ammunition. He has seven types of weapons. The main weapon is a pistol with unlimited ammo.