Santa Haircut is a career-simulation and dress-up game that features a Christmas theme. Santa needs his messy hair cut and styled before he makes deliveries of presents to girls and boys around the world. He also needs an updated suit.
The player starts in a hair salon area that provides tools used by a barber or stylist on shelves, including a sprayer to wet his hair, curling and straightening irons, curlers, a hairdryer, a comb, a shaver, a straight razor, scissors, hair-growth serum and a variety of hair dyes. They must watch an advertisement to access all areas. They switch between the front and back of the hair via an icon that looks like a head on the bottom right shelf.
After they confirm the hairstyle, the player receives access to four categories of clothing and accessories. Beyond changing the color of Santa's famous suit, they can add braids to his hair and select decorative hair and suit items. They can sort the items manually or use a randomizer button labeled with a die and three question marks to pick items automatically.
Santa Haircut also features an achievement system. It rewards the player for using specific styling tools, trying all the hair colors, shaving Santa's head and trying all the clothing and accessories.