Battle Stations is a naval combat game that offers both single-player and multiplayer options. The single-player mode features two distinct game modes: Arcade and Campaign. In Arcade mode, players can engage in 1-on-1 ship battles with opponents, earning points for sinking their ships to rise through the ranks. In Campaign mode, players embark on a series of 50 missions, completing objectives such as eliminating enemy supply convoys or launching full-scale assaults on an opponent's homeland.
Players can select the admiral they want to face in battle, with each admiral having unique skills and abilities. The game also features War Games mode, where two players can compete against each other in 26 different locations, using one of three gameplay styles: war, capture the flag, or capture the harbor.
Gameplay involves strategic movement of ships on an overhead map, with battles initiated when two ships come close enough to each other. Players must maneuver a target reticule onto their opponent's ship while avoiding attacks, with the goal of sinking the enemy vessel once its health meter reaches zero.
The game features eight different types of ships, each with unique ratings in various categories such as top speed and hull strength. Players can choose to play as one of several countries or create a custom naval force, affecting the starting number of units for each type of ship.