Colin McRae Rally 2.0 on the Game Boy Advance adapts the gameplay of the PC/console title to the handheld's capabilities.
The game features five licensed cars and tracks in six different countries, including Finland, France, Sweden, Australia, Kenya, and the United Kingdom.
The main rally mode takes the player through a championship, with each country's track consisting of six stages. The game uses a simulation approach, allowing players to adjust settings such as suspension, gearbox, steering, and tyres to suit their driving style. Damage acquired during a race must be repaired between stages at the expense of time.
Players can also practice single rallies, single stages, or participate in a time trial mode for individual stages. Tracks not available from the start must be unlocked by winning the championship first.
Besides rally mode, the game offers arcade mode, featuring six tracks for conventional circuit racing. This mode allows players to drive as time trials, single races, or compete in a championship. The mode also supports multiplayer via the link cable, allowing for head-to-head competition with a single cartridge.
Racing is displayed using a Mode-7-style bitmap engine, with cars rendered as texture-mapped polygons. During rally races, Colin McRae's co-driver Nicky Grist provides digitized speech calling out road features ahead via the game.