Story mode and free mode
The story mode retains the same faction-based storyline and returns with seamless cutscenes. In addition, each of the characters of the "Other" faction has one scenario dedicated to them, forming a loose "Other" faction story mode, in a first for the series. Stages now have more freedom of progression for the player, unlike the previous installment, which was strongly preset in means of stage routes. A selection of up to four characters will be offered for each stages in story mode, instead of controlling a pre-defined character; the mission objectives in each level differ based on the character chosen. The story has been entirely rewritten, with each of the four factions' stories dividing into a historical path and a hypothetical path at a critical portion of their stories. Each mission may have a number of optional objectives which unlock additional side story missions or alter the course of history, such as the moment where the flood attack in Fan Castle fails and therefore saves Guan Yu's life from being extinguished and therefore in relation also saves Zhang Fei from the betraying officers. In order to unlock the hypothetical path, players must complete all of the optional objectives in both the main and side stories prior to the critical point of the storyline. The game also allows a co-op play of the story mode and it can be played both offline and online. However, online co-op is only available on the PS3, and Xbox 360. The PC version does not have online multiplayer. In the previous installment to the franchise, Dynasty Warriors 7, the story mode was only single-player.
Xtreme Legends adds an additional storyline for Lu Bu's forces, primarily focused on Lu Bu, Chen Gong, and Zhang Liao. In addition, a series of hypothetical missions are added to the four main kingdoms' storylines, mostly recreating historical events with a slight hypothetical twist (for example, one Wei mission is premised on Cao Cao sparing Lu Bu after the Battle of Xiapi and utilizing him in the Battle of Guandu, while a Shu scenario has Liu Bei turning to Sun Ce rather than Cao Cao after the Battle of Xiaopei). Each of the three main kingdoms contains a two-part "mini-campaign" centered around the new character introduced to their respective factions (Yu Jin, Fa Zheng, and Zhu Ran), while the Jin faction, having no new characters, has a three-part mini-campaign featuring a fictional version of Zhong Hui's Rebellion. Each campaign concludes with a whimsical side-story mission, not set to any particular timeline. Additional "Other" scenarios are also included for the Other faction.
The music for the hypothetical portion of each Story Mode is taken from earlier Dynasty Warriors installments, with four pieces specifically remixed for this game (one each from Dynasty Warriors 3, 5, 6, and 7). Furthermore, the four kingdom leitmotifs introduced in Dynasty Warriors 7 return and are further expanded upon in the soundtrack of Dynasty Warriors 8; Xtreme Legends adds a kingdom leitmotif for Lü Bu's faction based on his recurring theme.
Free mode returns for the first time since Dynasty Warriors 6 in terms of main game. Players will be given opportunity to play as an opposing faction in the stages a la Dynasty Warriors 3 and 4, instead of being forced to play in a faction as in Dynasty Warriors 7: Xtreme Legends.
Ambition Mode
A new game mode, called the "Ambition Mode", has been introduced. In it, the player is tasked to create a social base for peasants called the "Tongquetai Tower" and to make Emperor Xian visit it. To raise the tower's status, the player must take part in three different kind of battles; Skirmish battles which give materials to construct the tower, Raid battles which increase fame, and Large-scale battles which can recruit new partners. Players start out with the weapon shop as their sole base facility. More can be added or expanded upon as the town gradually becomes populated with people. These include a food market, a trade shop, a menagerie, etc.
Xtreme Legends introduces a countdown timer into Ambition Mode, where a player is initially given 7 minutes of time (the base game granted 15, 30, or 60 minutes per scenario, based on the game map), and is granted additional time for every 100 enemies killed, for every officer defeated, or for achieving stage objectives (up to a maximum of 15 minutes). It also introduces a second portion to Ambition Mode, reminiscent of both Dynasty Warriors Next and the Empires installments, where, following the construction of the Tonquetai and the visitation of the emperor, a false emperor has arisen and the player is tasked to eliminate the false emperor by subjugating territories under the false emperor's influence. The bodyguard system of the base game is expanded, where, instead of the ability to bring one (playable) character with them to battle, they may bring three (generic or playable) officers with them. The ability to select bodyguards is based on a "fee" system, constrained by the playable character's leadership rating as well as an inherent cost to hiring the character as a bodyguard (for example, playable characters cost more than generic officers). Each bodyguard is also associated with a particular bodyguard skill, which may be used by the playable character to affect the course of gameplay. Bodyguard skills may be upgraded with use, or by releasing other officers (the released officers return as enemies, and may be re-recruited), while the leadership rating of playable characters may be upgraded by using the skills of their bodyguards.
Challenge Mode
As with previous Dynasty Warriors games, Xtreme Legends adds a Challenge Mode, which uses stock characters (as opposed to the customized characters in Story, Free, or Ambition modes) for various arcade-style challenges. There are a total of five mini-games, each of which reward the player with a customizable weapon based on the character's score in the challenge; these may include weapons with weapon elements that are unobtainable in any of the other modes.