Before you can venture into space you have to make a character. Like most RPG you can choose gender, appearance, skills, and alignment. There are three classes to choose from: Scout, Soldier and Rogue. Each features different "feats," like two-weapon fighting or sniper-shot, and "skills," like demolitions or repair. By your actions in the game you receive points for either the dark side or the light side. When you do good things, like saving someone from a gang of thugs, you gain light side points. If you kill all the thugs AND the person in distress however, then you gain dark side points. There are many choices like that in the game and that gives the game its feel.​

The two key elements in Star Wars: Knights of the Old Republic is the combat and the dialog. When you run into the enemy the game pauses. You then need to issue orders for your party. Should you choose to fire your blaster at the foe or should you throw a thermal detonator at him? You could also charge at him with a sword or if you happen to have a Jedi Knight with you it might be good to use the force. All the choices you make will impact the outcome of the battle, use your characters wrong, and it could end in failure.​