Velvet Assassin is a 3rd-person stealth shooter set during World War II and inspired by the real life secret agent Violette Szabo. The player assumes the role of the fictional secret agent Violette Summers. While she is in a coma at a military hospital, recovering from injury, the player plays through the memories of her former missions behind German enemy lines.

Gameplay is centered around stealth and heavy use of dynamic lighting. At several places in the game, the player must exploit the shadows of moving objects to remain unseen. When hidden, she is surrounded by a purple aura that fades when she moves into the light or is spotted by an enemy. A special variant of bullet-time, called Morphine Mode, is explained as such that the real Violette is administered a dose of morphine by a nurse during those moments. Many different types of stealth kills can be performed, based on the weapons Violette is currently wielding. There are collectibles hidden throughout the levels that give experience points upon discovery, which can be used to boost player abilities.

Since the game takes place in a fantasy world of memories, the atmosphere and art style is purposefully contrasted and moody.

Certain releases include bonus disc which contains game trailers, wallpapers, and comic.