Bubble Town is a bubble-popping game. The Borb Bay Borbs need the player's help to stop an invasion from aliens called the Lumps. The only way to fight back is by using a clear cannon to shoot Borb heads at the heads of Borbs, Lumps, and other types of bubble-shaped objects on playfields across 50 levels.
The player can only save Borb heads and drop Lump heads by using projectile heads to create matching sets of three or more heads on the field. They receive some help directing the shots from a laser aiming line. When they complete a set, the heads fall from the field. The game places non-matching heads connected below the set inside the clear tube that feeds the cannon. The player earns points with their shots. They earn extra ones when they perform large drops and use the walls to angle shots.
Obstacles on the field include jellyfish and shroud clouds that cover heads, sleepy Borbs, wooden crates and shot-blocking heads. Bubble Town allows the player to swap two heads to improve the chance of a shot succeeding. The player can also use five powerups to complete their task, including Sureshots for perfect aim, BubbleBubbles that transform all hits to match, Hotfoots that act like fireballs, Plungers that take a head from the field and drops it into the cannon, and Wilds that always make perfect matches.
If the player runs out of projectiles, the heads slide one row down the field, and the projectile tube refills. The player loses the game if the heads slide to the bottom of the field.