There are 200 soldiers to collect throughout the game, gained by competing in the different types of races. There are 8 unlockable characters, which can be unlocked by earning the required number of soldiers for that respective character:

• Rex - 20 Soldiers (unlocked by Buzz)
• Hamm - 45 Soldiers (unlocked by Woody)
• Slinky Dog - 70 Soldiers (unlocked by Bo Peep)
• Mr. Potato Head - 95 Soldiers (unlocked by Woody)
• Little Green Men - 103 Soldiers (unlocked by Buzz)
• Rocky - 130 Soldiers (unlocked by RC)
• Lenny - 175 Soldiers (unlocked by Mr. Potato Head)
• Babyface - 179 Soldiers (unlocked by Rocky)

The initially unlocked characters are: Woody, Buzz, Bo Peep, and RC.

• Single Race - Regular race, the player must finish in first place to be awarded a soldier. (some races range in the number of laps and number of opponents).
• Reverse Race - Same as Single Race, but the tracks are reversed. (This feature can be played on other types of races such as knockouts, tags and smash races).
• Race Cup Tournaments - A race tournament where each position is awarded points; the winner is the toy with the most points
• Smash Challenge - 4-8 toys are placed in a track, where the aim is to eliminate other toys by using the weapons on the track
• Smash Tournament - A Smash Challenge-based tournament, where toys are given points for the number of "smashes" they earn during each of the tracks.
• Knockout Race - A knockout-style race, where the toy in last place on every lap is eliminated.
• Knockout Tournament - A knockout-style tournament, where toys are eliminated at the end of every race.
• Survival Race - Same as Single Race but players must avoid being hit by weapons, otherwise they are eliminated. They must also finish in first place within the time limit.
• Super Survival Race - Same as survival race, but the player must eliminate all the toys.
• Time Trial Laps - Arcade-style mode; complete the lap within the time limit to win.
• Endurance Races - Complete a number of laps within a time limit to avoid elimination.
• Tag Races - To win the player must bump other players with their car.
• Smash Tag Races - Same as tag race, but players are eliminated with weapons, not by crashing.
• Collection Challenges - Collect the items scattered (clown toys) throughout the tracks before the time runs out.
• Target Challenges - Hit the target boards with weapons scattered throughout the tracks before the time runs out.
• Countdown Challenges - The player must complete a number of races within a time limit.

The game has 18 tracks: 11 race tracks & 7 smash arenas (one is both a smash arena and a race track)

Race tracks:

• Andy´s house (From Toy Story 2)
• Andy´s new house (Snowy yard)
• Andy´s neighborhood (From Toy Story)
• Mall
• Pier
• Pizza Planet (external)
• Underground parking lot
• Sid´s attic
• Sid´s house
• Sid´s yard
• Skate park (Also a smash arena)

Smash arenas:

• Basketball court
• Bowling alley
• Cinema (Showing some scenes from Toy Story)
• Gas station
• Ice rink
• Pizza planet´s arcade
• Pizza planet´s diner
• Skate park (Also a race track)

The game includes eight items, found in 4 different coloured boxes: (7 weapons & 1 special item, 2 per box)

• Yellow boxes: The Pixar ball & Magic 8-ball
• Blue boxes: Rocket & Big whipping top
• Pink boxes: Little whipping top & Bo Peep´s sheep
• Red boxes: Electroshock & Battery speed boost (not available in smash arenas)

• Jim Hanks as Woody
• Tim Allen as Buzz Lightyear
• Don Rickles as Mr. Potato Head
• Darryl Kurylo as Slinky Dog
• John Ratzenberger as Hamm
• Jeff Pidgeon as Little Green Men
• Earl Boen as Rex
• Pat Fraley as Rocky Gibraltar
• Rebecca Wink as Bo Peep

The game received a 73.24% score from the aggregator website Game Rankings, based on 15 reviews for the PlayStation version, and 63% based on 6 reviews for the Game Boy Color version. IGN's review stated "Toy Story Racer is aimed at young kids, but it's surprisingly adult in the level of detail, depth of gameplay, and its overall design", whilst Tim Tracy, from GameSpot, remarked that "it's no Crash Team Racing, but Toy Story Racer provides plenty of challenge for young and old alike."