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Silkworm is an autoscrolling shoot 'em up, presenting its challenges in what is called Waves. Players may either choose the Jeep or Heli; in a two player game, both are used and provide each other with mutual support. In a single player game, enemies may behave slightly differently, such as dropping mines rather than doing regular shots.

Each wave finishes with a boss fight, as expected.

After destroying 32 targets, and every 64 targets thereafter, a snakehead helicopter will make an entrance. Destroying it will give both players a twin shot, or some other bonus if you already received it.

After wave 11 in the arcade version, the game either returns to wave 4 for continued play. Home computer versions have an ending screen instead.