When Ebeneezer von Clutch, the owner of the famed racetrack amusement park MotorWorld, has the Black Power Gem that maintains his life force stolen, he charges Crash and friends (and foes) to recover the gem and catch the culprit.

Similar to previous racing games in the Crash Bandicoot series, players are able to choose from a variety of characters from the series, including both notable allies and enemies, along with several notable new characters. In addition, Crash Tag Team Racing introduces the ability to 'clash' with another racer, allowing the two to create a hybrid vehicle to cooperatively destroy their opponents.