Nancy Drew: The Shadow Ranch Mystery is a quest game focused on completing sequential tasks, solving puzzles and interacting with the outside world. In this part, the main character came to Arizona to visit her friends Jess and Bess at their ranch. As soon as she arrives on their territory, she finds that no one is there. It turns out that Uncle Ed was bitten by a poisonous snake, which required them to go to the hospital.

A ghostly horse appears near the ranch, which Nancy notices. She knows about the legend that it is the curse of former local Dirk Valentine. While he was living, he fell in love with the sheriff's daughter named Frances. As Drew learns more about a long-time legend, he uncovers clues about treasure that was left for an old love but never found. The protagonist of Nancy Drew: The Secret of Shadow Ranch goes in search of treasure, and to do this she will need to find out where it is.

During the passage the player will meet several minor characters. For example, Ed and Diana Rowley are ranchers, but they do not appear in person, and communication occurs only by phone. Nancy will meet with ranch worker David Gregory, a cook and a middle-aged groom. Each resident will provide their information to help them get to the hidden treasures. The gamer can choose which part of the game territory to go to in order to explore it and find new clues.