Squarez Deluxe! is a puzzle game similar to Tetris. Various shapes appear and can be moved with the mouse and placed on the playing field. When a 3x3 or larger grouping is created, it disappears and the player scores points. The game is over once the player can no longer place a new piece on the board.

There are three game modes: Basic, Normal, and Extreme. Basic has regular tiles only. The Normal mode is just like Basic except that some of the shapes contain special tiles. These tiles are activated when the square containing them disappears. Some tiles, like bombs and score multipliers, are helpful, while others, like spikes, should be left alone. In the Extreme mode there are a lot more of these special tiles.

Squarez Deluxe! also features a head to head mode. In this mode two players each have their own playing field, and certain special tiles activated by one player can affect the other. The player to last the longest wins.