NARC is a 3rd-person shooter that has the player tracking the distribution of the deadly new narcotic "Liquid Soul" across two different cities in Asia and the U.S.A. The player controls one of two characters - Narcotics detective Jack Forezenski (voiced by Michael Madsen), or D.E.A. agent Marcus Hill (voiced by Bill Belamy). Both are led by Narcotics chief Joe Kowalski (voiced by Ron Pearlman), and the player switches between the two as the story unfolds.
The gameplay involves roaming the streets, stopping random street crimes, and dispensing justice at discretion. Players can also arrest alleyway drug dealers and deposit their drugs safely at the station. However, they can also beat up drug dealers for cash and stash, then sell the drugs to civilians for income, using the drugs themselves for temporary beneficial effects.
The player's badge rating is a key aspect of the game. As an undercover cop, players are free to roam the streets, but excessive use of force against innocent civilians or selling drugs to other undercover cops will result in major losses of badge points. The player must balance their actions to maintain a high badge rating and progress through the story.
Players have a maximum badge rating of 100. If it drops below 49, they are demoted to Patrolman and cannot take new story missions. There are also 25 hidden drug stashes in each city that can be found to unlock the original N.A.R.C. arcade game for play.
The player's actions have consequences, with a rating of 5 or lower spawning officers specifically to shoot or arrest the player. The goal is to balance justice and survival while navigating the complex world of Narcotics.