Animal Crossing: Amiibo Festival is a single-player and multiplayer party board game. Set in a peaceful town from the Animal Crossing universe, the game centers on a board game festival where familiar villagers gather to compete for happiness and wealth. The player takes on the role of an Animal Crossing character, represented by a compatible Amiibo figure, and participates in month-long board game sessions where the goal is to finish with the most Happy Points.

The main mode plays like a digital board game. Players roll dice to move across a large village-themed board divided into spaces that trigger events. Some spaces award bells, the in-game currency, while others cause a character to lose money, gain Happy Points, or face small story events involving villagers. Each turn represents a day, and when 30 turns have passed, a month concludes and the winner is decided. Dice rolls are activated by tapping an Amiibo figure to the Wii U GamePad, which also serves to store progress and winnings for that character.

Mini-games and short diversions accompany the central board game. These include Balloon Island, Desert Island Escape, and Quiz Show, which use Amiibo cards for participation. In these games, players may aim for high scores, answer trivia questions about Animal Crossing, or strategize to survive on a deserted island. Each mini-game provides variety and allows players to use different types of Amiibo accessories.

Progression is tied to Happy Points, which can be exchanged for tickets used to unlock new board variations and features. Tickets are earned both from the board game and mini-games, creating a loop of continual play and customization. Different months of the in-game calendar also change the board visually and alter events, reflecting holidays and seasonal activities seen in the mainline series.

Beyond dice rolling and mini-games, the game emphasizes interaction with Amiibo. The board game cannot be played without at least one Amiibo figure, and many optional mini-games require Amiibo cards. Each Amiibo keeps track of stats, rewards, and items between sessions, allowing characters to grow more personalized the more they are used.

The game supports up to four players locally, with each requiring their own Amiibo to participate. Single-player sessions against computer-controlled villagers are also possible.