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No More Heroes III is a third-person action-adventure hack and slash game where the player assumes the role of the professional assassin Travis Touchdown, who must climb to the top of the Galactic Superhero Rankings. The game marks a return to the series' open world format last seen in the first game and has the player explore a man-made metropolitan archipelago, taking on various side activities such as part-time job minigames, and defense missions where the player must battle waves of enemies. Unlike past games, the open world is split into five unique islands, one of which includes the series' staple fictional city of "Santa Destroy". The player can traverse around and between the islands with Travis' new modified motorcycle; the "Demzamtiger", though travel between objectives can also be expedited via a fast travel system. To progress in the game, the player must accrue enough money from missions to pay an entry-fee to a ranked battle. The player must then face off against one of the Rankings' top contenders in a unique boss battle.
Combat plays out as a hack-and-slash game in real-time. Similar to the previous mainline games, the combat is predominantly centered around Travis' signature "Beam Katana"; a sword with a blade composed of energy. The player can perform various light and heavy combos with the sword. Successful strikes power up the player's "Tension Gauge" whereas taking damage depletes it, higher tension leads to longer and more damaging combos. When an enemy has had their health sufficiently depleted, the player is given a directional prompt to execute a "Killer Slash"; an unstoppable attack with large range that does heavy damage to adjacent enemies. Upon successful executions of enemies, the player activates the "Slash Reel"; a slot machine which gives the random chance of a currency bonus or a power-up. At times the player may lock swords with melee-based enemies, upon which they must perform rotation motions to counter the enemy. The Beam Katana runs on power represented by a battery that gets depleted during attacks, when fully exhausted the player is left vulnerable and must manually recharge it. The player is able to perform a variety of professional-wrestling techniques on stunned or diverted enemies to deal greater damage and instantly recharge the Beam Katana's battery. Defensive maneuvers exist in the form of blocking and dodging; if the player times a dodge correctly against an incoming attack a Perfect Dodge is executed, causing enemies to enter a slow-motion state and leaving them susceptible to a flurry of attacks. If the player falls in battle, they are given a random chance of a stat boost upon retrying.
New additions to the series' staple combat mechanics include the "Death Glove" carried over from Travis Strikes Again: No More Heroes. The Death Glove allows the player to perform a teleporting dropkick. An additional three unique skills are obtained that can aid in combat, which include the ability to perform psychokinetic throws, the ability to set up a sentry that automatically fire projectiles at enemies in a radius, and the ability to set down a field that slows down enemies within the radius. All skills operate on a cooldown timer. If the player rolls a jackpot on the Slash Reel, represented by triple sevens, the player is able to activate one of two "Full Armor" modes, which boost the player's attack options and allows them to fire projectiles. A different form of the Full Armor is employed for shooting defense missions; a new side activity which take the form of shoot 'em up mecha battles where the player must defend the planet from large scale aliens.
The player can return to Travis' motel in between missions to upgrade various stats such as their health and weaponry, which compared to previous entries, now utilizes a unique form of currency. Scrap parts derived from battle missions can be sold off for additional currency or used at the motel to construct Death Glove chips that provide various unique stat modifiers, and the player can also order consumable items in the form of sushi that give players stat boosts in battle, such as increased damage or reducing the Death Glove's cooldown timer. At the motel, the player can also play minigames with Travis' cat, customize his wearable attire, collect capsule toys from a gashapon machine, engage in a combat tutorial room, or use a time machine to revisit past bosses.