The gameplay is similar to Electronic Arts' own Need for Speed series.
Beetle Adventure Racing supports up to four players. Two-player races can be held in any of the tracks, provided they have been unlocked in the single-player championship. Two to four players can also take part in the "Beetle Battle" mode, a vehicular combat mode in which players compete to collect six differently colored ladybugs (HSV pendants in HSV Adventure Racing), attempt to destroy the other competitors, and race for the exit once all the ladybugs are collected.
Single-player has two modes, Single Race and Championship. Single Race is single-player racing against computer-controlled vehicles on any stage that has been unlocked in the Championship mode. The championship is considered the main game, where players are given three circuits starting with Novice, Advanced, and Professional, with a fourth secret circuit, the Bonus Circuit, which is unlocked after completing all previous circuits.
Upon completing each circuit, new vehicles and tracks will be unlocked. Two special vehicles are unlocked by completing both Professional and Bonus circuits, the Alien Beetle and the Police Beetle respectively. The Alien Beetle's horn consists of the words, "We come in peace," spoken in an alien voice. The Police Beetle uses a siren, in which all other computer racers stop and pull over upon hearing it.
Four different types of crates are scattered along each track in Championship mode. Three of them are Point Crates, which are mostly found off track in shortcuts. The points are used to earn Continues during each race, with between 50 and 70 required to get the Continue (dependent on difficulty). Finding all point crates, which add up to 100 in total, gives players a new Arena In Beetle Battle Mode.
Upon smashing through Nitro crates, the player is given a temporary boost of speed. These crates are usually found on hidden paths and beside the main roads.
The fourth crate is a Cheat Crate, hidden on each stage. Smashing one, the player would hear, "Groovy!". Smashing a Cheat crate the first time unlocks the Cheat Menu, which offers cheat codes in both Two-Player Racing and Beetle Battle. The Cheat menu has an Easter egg in which all the developers of the game have their faces scattered on the background of the menu.
