Wiz 'n' Liz takes place on the magical planet of Pum – which the game admits is a silly name – where a group of "wabbits" (rabbits) have been taken by a spell gone awry, and it's the job of two wizards – Wiz and Liz – to rescue them.
The game takes place on a series of levels, each divided into eight worlds. Each world has a distinct graphical style and music, but the basic gameplay remains the same. Wiz and/or Liz must run through the landscape collecting wabbits against a strict time limit. To win, the player must collect floating letters that appear when a wabbit is collected, to spell out a magic word shown at the top of the screen. Once an entire word is collected, the player then must rescue all remaining wabbits on the level, who now release collectable fruit, stars and clocks to increase the time limit. The limit starts at three minutes and is only restarted when the player character dies. This time limit can however be extended by collecting a glowing orange orb which appears in the last ten seconds of a countdown and gives 30 seconds of bonus time.
At the end of each stage, collected fruit can be mixed in a cauldron, and depending on the fruit, the effect can be bonus points, a minigame, a weird graphical effect, a bit of silliness (such as declaring a "Game Over" and killing your character, only to put them back with a sheepish "Only joking..."), turning the wabbits different colours, or "Absolutely Nothing".
Wiz 'n' Liz features a number of cameo appearances from other Psygnosis characters, including Puggsy and Lemmings
The bonus game was featured in the original mid-90s run of competitive gaming television show Games World (broadcast on Sky One in the UK) as one of the challenges. Players took turns to play the bonus game of collecting the blue wabbits, and the highest scorer won that particular challenge.