Using sprites gives animations a very sleek look, and not having to redraw the sprites is more efficient.
It's the first entry to have a playable overworld with more than one enemy to face. That said, the encounters are not exactly random, and the map is quite empty.
The battles really make you use all your resources carefully, almost to an annoying degree with Druaga. It makes that particular battle feel scripted.

A fan's review of Episode 5:

HOLY COW WHAT A CHANGE! This marks the use of sprites with different animations, and that technique will be a mainstay for much of the series. I adore this episode, with its rocking intro, the battle with Seelkadoom and Sonic, Night's Castle being a callback to dungeons from RPGs. The castle has 3 keys and random encountered, and that's where the combat was truly refined. I adore it. While replaying Episode 5, I actually really liked fighting the Druaga. Still a great episode.

Why the hell does Sonic sound like Shadow in this? The VA really didn't know what was going on, huh?

Classic game on the web

Why did this turn into a walkthrough video? This was the excellent game that turned Sonic RPG from an interactive movie into a fun game (granted episode 1 to 4 were good for their time)