The objective of World Karate Championship is to get the highest possible dan (karate grade, determined by belt colour) and become the world champion - and of course, to get the highest score. Karate fighters compete against each other on side-view screens, with scenery representing real world locations (New York, Egypt, Japan, etc.). In between the fighting stages, there are short action sequences, during which the player can gather bonus points. These include deflecting bouncing balls, breaking wooden planks, and others.
The gameplay involves controlling your chosen karate fighter as they compete in one-on-one matches against opponents on side-view screens. You'll need to use punch buttons to land successful hits, while avoiding taking too much damage. The game also features a practice mode where you can hone your skills and improve your techniques.