Grudge Warriors is set in the future, where gang warfare has escalated to using advanced armored vehicles. A mysterious figure called the Crimelord has organized a tournament on a secluded island called "The Death Ring" for all gangs to fight each other and earn his favor.
The gameplay focuses on vehicular combat, with bases defended by enemy vehicles, gun turrets, and mortars that harass the player while searching for power generators. Players can choose from 23 missions, each with its own set of power-ups such as invulnerability, invisibility, and nitro boosts, which are earned after collecting tokens scattered throughout.