Buggy is a racing game where you drive a small radio controlled car. The player can choose between 12 different cars (some have to be unlocked) to control. The game consists of 16 levels and a number of bonus levels. There are three game modes: Time attack, Challenge 1 and Challenge 2. In Time Attack you compete against yourself for new personal records. At the beginning not all levels are available in this mode, they have to be unlocked by completing certain levels in Challenge 1. Challenge 2 is not available until Challenge 1 is completed. The second challenge contains all the levels from the first challenge plus some new ones.
The player starts in a hub world and can drive through gateway ports to select challenges and races. During the race there are ports with colored banners and the player can drive through them to collect colored flags, similar to Buggy Boy. The available colors differ for each race and collecting certain color sequences yield different power-ups. For example collect yellow and then red for a speed boost, or red, blue, yellow to temporarily freeze opponents, or orange, green, red, purple to get a helicopter power-up allowing the player to fly for a short period.