Karate Champ is an action fighting game for one or two players.
In one player version, the player must master some skills at a karate school to compete in a national karate tournament. At the end of each match, there is a bonus round where the winner can earn extra points by knocking down flying objects, breaking roof tiles/ice blocks, or knocking down a charging bull on the beach.
In the two-player version, players compete against each other at twelve different locations to see who has the best karate skills. To win a match, the player must win two of three rounds by knocking down their opponent with various karate moves. The first player to gain a two-point lead wins the round.
The game ends when one player gains a 30-second time limit advantage in each round. At the end of each match, there is a bonus round where the winner can earn extra points by knocking down flying objects or breaking boards.