The second sequel to the superb 1989 original, Pang! 3 retains the same gameplay of its predecessors but adds vastly improved graphics and a choice of three difficulty levels; Beginner, Normal and Panic. On both the 'Normal' and 'Panic' skill levels, players can choose from 4 different playable characters; each possessing different strengths and weaknesses, such as a double harpoon or quick shots. On the beginner level, players can only use the Mexican character.

Another notable difference is in the game's use of backdrops : instead of the world landmarks of the first two games, Pang! 3 features classical works of art in the form of paintings and sculptures.