The objective of World Karate Championship is to get the highest possible dan (karate grade) and become the world champion - and of course, to get the highest score. The game takes place in various locations around the world, including New York, Egypt, and Japan. During these location visits, you can earn bonus points by defusing bombs, breaking wooden planks, or other actions.
Gameplay involves competing against rival karate fighters on side-view screens. Your goal is to defeat your opponents using various punches and kicks, while avoiding their attacks. After each fight, the player earns points based on the opponent's grade, with higher grades worth more points. The game also features short action sequences where you can earn bonus points by completing specific tasks.