In a new reality where the Soviet Union won the Cold War, a fierce conflict is unfolding in America as the Red Army invades a vulnerable United States. The player takes on the role of an average citizen caught in the middle of the conflict as forces take control New York City and begin imprisoning innocent Americans, including the player's brother. With American military forces pushed out of New York City, an Underground Resistance movement in Manhattan is all that remains to retake control of the fallen city. Recruited by the Resistance, the player will rise through the ranks by successfully completing missions with minimal casualties, ultimately becoming the charismatic leader of the group. Success will largely depend on the player’s ability to recruit and lead fellow New Yorkers to join in the battle, and eventually rescue his sibling and liberate the city.

Freedom: The Battle for Liberty Island includes multi-player support of up to eight players on the PC and four players in split-screen mode on the console versions.