In Gizmo's story, the cute Mogwai has to prevent Stripe from ruining Christmas for Kingston Falls by retrieving all the presents that Stripe has stolen. Gizmo uses a flashlight to kill gremlins after rolling into a ball and weakening the gremlins. He also must destroy any gremlins that get in his way. In Stripe's story, he comes up with a scheme to destroy his mortal enemy Gizmo and destroy mogwais. If playing as Gizmo, all the enemies are generic gremlins. If playing as Stripe, the player will instead fight mogwais.

In Gizmo's story, the cute Mogwai has to prevent Stripe from ruining Christmas for Kingston Falls by retrieving all the presents that Stripe has stolen. Gizmo uses a flashlight to kill gremlins after rolling into a ball and weakening the gremlins. He also must destroy any gremlins that get in his way. In Stripe's story, he comes up with a scheme to destroy his mortal enemy Gizmo and destroy mogwais. If playing as Gizmo, all the enemies are generic gremlins. If playing as Stripe, the player will instead fight mogwais.