The game takes place in "Destiny City", a metropolis seemingly located near real-world Saskatoon, Saskatchewan.

Once every few years, strong fighters gather here and hold a violent, secret no-holds-barred fighting spree.

In Burning Rival, the player engages opponents in one-on-one close quarter combat in a series of best-two-out-of-three matches.

If both opponents knock each other out at the same time or the timer runs out with both fighters having an equal amount of vitality left, then a "double KO" or "draw game" is declared and additional rounds will be played until sudden death.

The player can perform special moves by inputting a combination of directional and button-based commands.