The story of Rayman Hoodlum's Revenge takes place directly after the events of Rayman 3: Hoodlum Havoc. The Hoodlums, led by Andre, kidnap Rayman's friend Globox as a form of revenge for their previous defeat. Rayman rescues Globox part-way through the game, and together they team up to stop the Hoodlums' plan to clone Reflux.
Gameplay in Rayman Hoodlum's Revenge features 3-D action gameplay with a fixed 2.5D isometric camera view. The game also includes puzzle levels where the player must switch control between Rayman and Globox to solve challenges, such as flipping switches or holding buttons down to progress.