Team Buddies is a squad-based third-person shooter with bright primary colours and a strong cartoon style characterise its gameplay. The objective is to collect crates, build and arm a team of buddies, and hunt down your enemies. Crates falling from the sky form the resource over which buddies fight.
The game features various multiplayer options, including deathmatch games, domination, and capture the flag variants, as well as a hidden footie game. Many of these features are only unlocked after completing several levels.
The gameplay includes isometric perspective with fully modeled worlds that exhibit physics, such as vehicle control and special effects for weapons. The game also features AI control for over twenty agents on a level, each with different behaviors.