The game includes a level editor, leaderboards, Xbox Live Vision camera support, and multiplayer gameplay.

The game includes a variety of different bug types (as units), each serving in a different combat role (e.g., heavy infantry, archer, support, etc.).

This system helps ensure that players do not spend an excessive amount of time waiting for their opponents to act.

Lastly, some bugs can make use of magic, with various spells which can be cast a limited number of times per battle.

The levels are tied together by a brief (but humorous) story which revolves around Maal, the protagonist, and his quest to discover the true nature of the threat to his homeland.

[5] Additionally, Band of Bugs is the first Xbox Live Arcade game to allow players to share user created maps.

[7][8] During an interview, the development team emphasized their commitment to Xbox Live Arcade and focusing on gameplay over graphics or cutscenes.

This collection includes a new map tile set (snowy), an all-new campaign with 10 new levels and new characters, and 1 new unit type.

A new DLC campaign pack titled "Tales of Kaloki", based on Outpost Kaloki, offering a new story, new units, new unit types, a new map tile, weapons and abilities was also released in the same month along with a Band of Bugs Premium Dashboard Theme.

IGN remarked that while the Xbox 360 version has all the necessary basic elements, it lacks gameplay depth and the ability to customize units.

[14] Overall, the enjoyment of the colorful graphics and the map editor were tempered by concerns about the game's longevity for genre fans.