Dancing Blade is an anime FMV game. The player simply watches each scene as it proceeds; the only interaction is occasionally selecting dialogue choices when prompted. Depending on the player's choices, they will reach one of four different endings. Once an ending is reached, the scenario leading to that ending can later be replayed without interruption. Any scene already viewed can also be freely revisited.

Momohime is a young girl who was found inside a giant peach as a child. She is traveling with her friends, hoping to learn more about where she came from. They have heard of another mysterious young girl named Nayotake who lives in the capital, and are heading there to see if there is any connection, but when they reach the capital they find it under attack by strange creatures! Just what is going on, and is there any connection between Momohime, Nayotake, and the mysterious creatures?