This game is heavily inspired by the movie of the same name.
A big music show is being held by Blue and her friends. However, there's a lot to do to get prepared like setting up the stage, getting instruments to play, practice songs, get props for the stage, and inviting guests to the show.
Players take control of Blue and guide her to different areas around her house and neighborhood while trying to finish the preparations for the show. The main game is broken up into six different acts. Each act has the player searching for 3 different Blue's Clues. Finding all 3 Blue's Clues will then make the player solve a multiple choice question on the meaning of the clues. Some of the locations the player explores will have interactive items in the background which will usually cause a short animation to happen when interacted with. The player can also find and hold an item in their inventory which can be used when interacting with other characters. Also some locations have Skidoo minigames.
Some of the Skidoo minigames include sprinkler skipping, cupcake color matching, the birdsong sing-along, a red light/green light type game, and a rhythm-based drum game.
There is also a Parent Info mode that lets an adult select for their child any clue searching act to play or let's them play any song contained in the game. These songs are from Blue's Big Musical Movie.
This was the last Blue's Clues game to feature Steven Burns, the original star of the Blue's Clues series. Burns would leave the show in 2002 to pursue a musical career and was replaced in both the games and the series by Donovan Patton.
While no explanation of this change was made in the games, the series explained this through a three-episode arc in which Patton's character Joe, the younger brother of Burns' character Steve, moved into the house and eventually found out that Steve was leaving to go to college.