Banjo-Kazooie: Nuts & Bolts is set in Showdown Town, where players can build vehicles using Mumbo's Garage. With simple rules governing their creation, players can craft anything from hovercrafts to planes to trucks to rockets and more. The game takes players through various worlds created by L.O.G., each with its own challenges that require the right vehicle to solve.
The game features online multiplayer, allowing players to compete against others on Xbox Live, as well as share blueprints for their vehicles, video replays of their challenges, and in-game photos. The ultimate goal is to earn Jiggies by solving each challenge and ultimately face off against Grunty to win the deed to Spiral Mountain.