Kinect Star Wars is a game based on the Star Wars license and entirely controlled through Microsoft's Kinect peripheral that tracks movement and voice commands. All included game modes are representations of Star Wars activities performed within various locations throughout the Star Wars universe. Players use Kinect and physical movements (rather than input generated by a controller peripheral) to control the on-screen actions of their character. Players can choose to play alone, or with a partner who can enter at nearly any time to participate cooperative or competitvely.

The game contains five game modes: Jedi Destiny, Galactic Dance-Off, Duels of Fate, Podracing, and Rancor Mode.

• Jedi Destiny: Dark Side Rising Mode - Players in this mode take on the role of a Padawan Jedi, who is thrust into a story that spans locations and characters from the prequel movies. Players have acceess to lightsaber attacks, duels, force powers, physical moves and combat modifiers (dashing, kicking, jumping, jump-attacks), and a variety opportunities to travel and fight from Speeder Bikes, Land Speeders, and Ships as they progress through the story.
• Galactic Dance Off Mode - In this tongue-in-cheek mode, players take the role of a particiapant in a Galactic Dance Off. Players are given a preview of upcoming moves and challenged to match the animated dance moves of competing characters. Set within four different locations: Jabba's Palace, Bespin, Coruscant, and the Death Star players dance-off against a host of dancer, including: Han Solo, Boba Fett, Lando, Princess Leia, and more - within 15 contemporary music tracks that have been re-recorded to fit the Star Wars theme.
• Duels of Fate Mode - Unlocked shortly into the Jedi Destiny story campaign, the "Duels of Fate" mode pits players in one-on-one lightsaber combat with progressively difficult enemies. In addition, this mode includes three land-vehicle levels, four space combat levels, and six lightsaber duel levels. The list of lightsaber duel enemies contained within this mode incldudes: a Magna Guard, a Sun Guard, Count Dooku, Sith, Darth Vader, etc.
• Podracing Mode - Players take on the role of a podrace pilot whose goal is to become champion of the most dangerous sport within the galaxy. Players take control of a podrace vehicle, collect power-ups, smash the competition, and attempt to arrive at the finish line in first place. Compete in six races, distributed across five planets - ending at Boonta Eve. Players, as podrace pilots, can win circuits to unlock new vehicles, characters, and upgrades. The gameplay is similar to the games in the Star Wars: Racer series.
• Rancor Mode - As an escaped Rancor from various locations (such as Jabba's Palace), players wreak havoc in Mos Eisley, Naboo, Mos Espa, and Felucia. Players take the role of 5 different Rancor types: Bull, Jungle, Sand, Tyrant, and a secret unlocakble Rancor - each with distinct abilities. The player's goal in this mode is to gain points by smashing their way through various obstacles and by fulfilling challenges that are presented to them on-screen.