The Terminator loosely follows the plot of the 1984 Arnold Schwarzenegger film. The main levels of the game consist of side-scrolling jumping and shooting action. In between levels are car chases where the Terminator attempts to run you down as you race to your next destination.

The game begins in the future, where the hero Kyle Reese must battle through a post-apocalyptic future in order to go back in time to 1984 Los Angeles. Once there, he must progress through various checkpoints as outlined by the main movie plot: find Sarah Connor, shootout at the police station, and the climax in the factory.