The players take the role of hero puppets of various characters from the main Fable series, both heroes and villains, and battle through levels based on locations from the series. Gameplay is mainly of the side scrolling Beat 'em Up variety, with occasional minigames. Up to 4 players, online or offline, can play together at the same time, with spaces filled by AI.
As with the previous Fable tie-in games, gold from this game can be transferred into the upcoming Fable: The Journey. There are also a couple of hero puppets that can be unlocked by playing that game.
This game contains examples of:
- Cel Shading: The game's chosen art style.
- Dark World: Completing the game once opens up Dark Albion, a harder version of the game with reworked stages and different foes.
- Follow the Money: The goal in each level is to collect the most cash. Killing enemies and smashing scenery creates fountains of coins.
- Gaiden Game: To the main Fable series.
- Giant Mook: Harder levels contain giant versions of the normal enemies.
- Holiday Mode: On Halloween all the players gained pumpkin heads.
- Mini-Game Credits: The games credit sequence is a fully playable level.
- Mini Mook: Most enemies have a tiny version of them that the players can kick around.
- Mythology Gag: The pub table that serves as level select screen is strewn with objects that poke fun at the previous games in the series.
- Promoted to Playable: With the exception of the 'Fable King' puppet, none of the playable characters here have been playable in the series before.
- When All Else Fails, Go Right: Getting lost in Heroes isn't an option.