Like previous games in the series, Soulcalibur: Lost Swords is a weapon-based fighting game. Players can inflict high and low horizontal and vertical attacks, block oncoming attacks, and use parries to gain a tactical advantage. Features such as Soul Crush and Armor Destruction first introduced in Soulcalibur IV are retained; Soul Crush can now be used to make opponents drop collectible items and weapons The ability to ring out a character, however, is not present in the beta build of the game. Two new mechanics are added: Weapon Arts, which grants each character unique attacks such as breaking through enemy's guards, and support character feature, which allows players to temporarily borrow other player's character online.

The game features single-player experience modes. In Quest Mode, players traverse the world to participate in battles which allow them to collect raw materials and weapons; the former can be used to craft better weapons for use. Through character creation mode, players can create customizable characters as well as customize already existing characters with armory and other clothing parts which affect their abilities and stats in battles. Virtual item sales are offered online.