
The game follows Class VII throughout the school year, focusing on their field studies that take them to various cities and areas across Erebonia. The game's plot is centered around Rean Schwarzer and his fellow "Class VII" at Thors Military Academy, which is a newly formed class composed of both Erebonian nobility and commoners and is only one at the entire academy that does not segregate based on social class. The game is set in the Erebonian Empire and takes place after the Trails in the Sky trilogy and concurrently with Trails from Zero and Trails to Azure. Players can transfer save data between the PlayStation 3, PlayStation Vita, and PlayStation 4 versions using cross-save functionality. Trails of Cold Steel inherits the "Master Quartz" system from Trails to Azure.

The Orbment system from past games has been streamlined. Links becomes a more useful asset to the player as the story progress and characters level up their "Link Levels" with other characters Cold Steel maintains the "AT" (Action Time) battle system, which displays ally versus enemy turns on a bar on the screen. The system allows players to pair characters up with a "Link" system, which allows follow-up attacks and provide various other benefits. The game has a new battle system, designed for commands in fights to be selected at a faster rate.

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It adds free camera movement and fully 3D character models. The gameplay of Trails of Cold Steel is similar to previous Trails games, being a traditional Japanese role-playing video game with turn-based battles.
