In Balloon Fight, the player controls a Balloon Fighter who flies around with two balloons on his back. The object of the game is to defeat all of the enemies in each level by popping the balloon on their backs. When the balloon is popped, the enemy will float down on a parachute, and either land on the ground and survive, or fall in the water and drown, although sometimes a big fish will come out and eat the enemy before it can touch the water, but it can also eat the player if he is too close to the water. If the enemy lands, the player must harm it before it can blow up another balloon or it will change to a different color. It can also be harmed by hitting its parachute. All of these ways of harming the enemy will cause it to fall into the water which will cause a bubble to float up that can be popped for 500 bonus points. If an enemy pops one of the player's balloons, the player rises more slowly; if both are popped, the player loses a life. It is also possible to lose a life by falling in the water, getting hit by lightning, or getting eaten by a fish. After every three phases there is a bonus stage where balloons rise up out of pipes. Each one popped will give the player a certain amount of points, and if all are popped, a bonus for a perfect game is awarded.