The game takes place in the city called Torchlight, which, according to the creators, is situated on the nameless mountain. The boomtown is built above a source of valuable crystal resource associated with magic. The resource is called Ember. It is not only of material and scientific value but also a source of dangerous effects on all living organisms.

Optionally, the player can take third-party quests or visit other dungeon locations, from which he cannot be transferred at any time to the city, unlike traditional positions.

The game generates each level of the dungeon, collecting together small chunks of the game environment. Each chunk is made by hand and can be used in a variety of rooms. They can contain various events and interactive objects, such as levers that open secret rooms or push bridges to a previously inaccessible site.

Also, an additional feature is that the player can choose a pet (wolf-dog, ferret or lynx), which will be fully involved in the game, helping the hero in the battles. The pet is equipped and can carry a small amount of stuff.