Gameplay in Wolverine's Rage is relatively simple and repetitive. There are twenty levels in the game, grouped into chapters of five with a boss battle at the end of each one. If Wolverine is hurt he can regenerate his health back. The objective on most of the levels is to run through them before time runs out, battling enemies on the way. There is no save system in Wolverine's Rage, instead after completing a level you are given a password.
Lady Deathstrike discovers schematics allowing her to build a weapon that will melt Wolverine's adamantium skeleton. Lady Deathstrike decides to go ahead with the machine and Wolverine has to do whatever it takes to track her down and stop her.