Crash Tag Team Racing follows the story of Ebeneezer von Clutch, owner of MotorWorld racetrack amusement park, who loses his life force due to the theft of the Black Power Gem. He calls upon Crash and friends to retrieve the gem and catch the thief.
The gameplay in Crash Tag Team Racing is similar to previous racing games in the series, allowing players to choose from a variety of characters, including allies and enemies, as well as new ones. A key feature is the "clashing" ability, which enables two racers to merge into a hybrid vehicle to destroy their opponents.