LEGO Stunt Rally for Game Boy Color is a simplified version of the PC game of the same name. While it features the same storyline and environments, the handheld version has platform-appropriate 2D graphics, different track design, and fewer gameplay options.
The goal in the game's main championship mode is to defeat Mr. X, the top racer of Stunt Island. To be able to compete against Mr. X, four other racers must be defeated first. The championship moves through four environments with five tracks each: city, desert, jungle and ice, followed by the final challenge against Mr. X. Races must be won in order to continue. The quick race mode sets up a race on a random track, while the single race mode can be used to play races on tracks unlocked in the championship.
The game starts with four different cars available, which can be unlocked by winning races in championship mode. Unlike in the PC version, the cars cannot be customized for different track conditions with wheels or colors.
Races are seen from a top-down view. Cars corner automatically, with the player only controlling acceleration and lane changes. The game's objective is to slow down enough before corners so the car isn't thrown off-track while still being fast enough to win. Sometimes, one of the two lanes is blocked, making switching necessary. While there are ramps and jumps in the game, some features like jumping through smoke pillars or driving through loops are not present. Power-up pick-ups have also been reduced: the remaining ones are oil slicks, temporary speed-ups, invincibility and perfect grip.
The game also features a track editor, with more than a dozen constructed tracks being able to be stored via battery backup. Playing through the championship mode unlocks new pieces to be used during construction.