Moley Christmas featured similar gameplay to the previous game in the series, Auf Wiedersehen Monty. The player must guide Monty around various screens, jumping, climbing, dodging enemies, and collecting items. The game is made up of six screens, which the player must navigate to bring the game from the programmers to the magazine's readers.
A competition was run when the game was released. The final screen contained a message to the player. The first person to complete the game and send this message to the Your Sinclair competition address would receive 15 games from the Your Sinclair library. Six runners-up also received three games each.