Action Girlz Racing is a kart racing game with a cast of eight girls racing in miniature cars. The gameplay is very similar to the contemporary Myth Makers: Super Kart GP by the same developer. The three game modes are single trial, time trial and grand prix. There are three difficulty levels (beginner, experienced and advanced) and three racing classes (50 cc, 100 cc and 150 cc). The game includes environments such as a fairytale castle, sunset lagoon, action girlz high, dolphin bay resort and aquacoral resort. As with many of the developer's games most of the content is locked from the start. Most characters, tracks and race classes become available after collecting a number of flowers during races as a currency. The different characters only differ in appearance, not in abilities.

While racing it is possible to bump into other racers and the tracks contain many obstacles that slow down the racers or can be knocked around. Eight types of power-ups can be picked up such as nitro, an umbrella shield, shooting opponents or stunning them. Power-ups can be doubled or maxed out by collecting diamonds. Tracks often have branching paths, but instead of offering alternative routes or short-cuts, they often lead to dead ends, forcing the racer to backtrack.

The Wii version supports local split-screen multiplayer games for up to four players. The karts are controlled through motion by holding the Wii Remote horizontally and then tilting left or right. The PS2 version supports split-screen games for two players and up to four players through Multi-Tap.