Nicktoons Racing is another Mario Kart clone using cartoon characters from Nickelodeon. The gameplay follows the standards closely: the player controls one of the characters to win races on tracks filled with scattered power-ups and ramps. A meter at the top of the screen shows the current position and the amount of nitro fuel available. Extra fuel can be collected as shiny orbs on the road. The gift boxes contain random power-ups, like coconuts to throw at the other racers, flash lights to temporarily blind them, and traps like baby powder, trash cans and green goo to slow down the competition.
The game has four modes for single player. In championship mode, the objective is to arrive at least in third place to qualify for the next race. In time trial mode, the goal is to complete laps as fast as possible, with a ghost car showing the fastest performance to be surpassed. Practice mode allows players to explore any track without pressure to win. Relay mode involves switching characters after each lap.
There are three modes for multiplayer. The cups and relay modes are similar to their solo counterparts, but split the screen horizontally in the middle to show two players. The versus mode is a direct one-on-one competition between two players without other racers.