The game has ten levels. In the first six levels, the player moves Cookie Monster through a maze to collect cookies and deposit them in a cookie jar. Cookie Monster moves more quickly and can carry more cookies as the player progresses through the levels.
In the final four levels, the player guides the Cookie Kid (a muppet made just for this game), through the maze. Cookie Monster watches from the sidelines, then jumps into the maze and pursues the player. 
CCW worked with Atari to create a Kid's Controller for young children, with a large keypad. Each CCW game was packaged with a plastic overlay that could be placed on top of the keypad to help the child learn how to control the characters in the game.
- The Australian Centre for the Moving Image in Melbourne included Cookie Monster Munch in its "Game On" exhibition in 2008, in a section looking at video games in education.