Gameplay in South Park Rally is divided into three game modes: championship, arcade, and multiplayer. Up to 27 playable characters are available depending on which console version is played.[5]
- Championship: The main focus of the game, which has 14 different races (additional races in the Dreamcast version), all of which have to be done in order. This is the only mode where characters and tracks can be unlocked.
- Arcade: A practice mode allowing the player to choose any unlocked character on any unlocked track to race.
- Multiplayer: A race allowing two to four players to choose any unlocked characters on any unlocked track and race.
The game features a diverse set of objectives in races that encourage player interaction.[5] According to Acclaim Entertainment manager Thomas Bass, "Unlike other racing games where players avoid the other players in order to win, South Park Rally encourages interaction between players, which makes for some insane and wildly fun gameplay."[5] Original voice actors Matt Stone, Trey Parker, and Isaac Hayes provided dialog for the game.[5]