The Funhouse Pinball is themed after the concept of a funhouse, a walk-through amusement park featuring many attractions.
The game's overall theme is that of a funhouse, with the player taking on the role of a visitor to see its attractions. The overall goal of the game is to advance the "game time" to midnight and cause the Funhouse to close, allowing the player to start multiball mode. A secondary goal of the game is to complete the "Mystery Mirror" by lighting all of its modes, starting "Super Frenzy" mode. The game is over when the player has lost all balls, including any extra balls earned.