Gameplay is sprite-based and the player controls the car from a behind the vehicle perspective.[3] Players can choose between two types of car to race; either a 328 Twin Turbo or an F1 Machine, and then tries to complete eight driving stages.[4][5] Competitors vehicles get faster as the levels progress, and include VB Bugs to Ferrari Testarossas.[5] Players can accelerate their car up to 255 km/h as well as break and steer to attempt to pass their opponents and not be knocked off the road.[5] Hitting any obstacles or other cars can cause the players vehicle to flip and crash.[6] Players also choose between several songs, simulating a cars radio.[6] Levels vary in location from Los Angeles, San Francisco, as well as the Greek Parthenon.[6] Players have a simulated dashboard that indicates how far through the race they have gone, and a small checkered flag indicates when they have completed the race.[7] The players vehicle coasts as it decelerates for five to ten seconds upon reaching races end, and then points are calculated to see how long the player has successfully driven.[7]
Rad Racer players can activate a 3D mode during play by pressing the "Select" button and wearing 3D glasses.[3] Players could also use the Power Glove to control their vehicle.[8] The game was also compatible with the Famicom 3D, an accessory to the original Famicom released on in Japan that utilized LCD "shutter glasses" to simulate 3D.