The player assumes the role of a robot called Peatron to defeat a group of space pirates that have taken over the planet Animal Star on a intergalactic squash tournament.

[1][2] The player can use special power-ups, which are obtained by hitting boxes scattered in the arena, such as walls to protect Peatron's playing field, speed and health.

[1][2] Space Squash was first announced at E3 1995 as one of the four projects under development by Coconuts Japan Entertainment for the Virtual Boy alongside Intercept, Proteus Zone and a 3D shooter.

[6] Nintendo Magazine System noted that the title made decent use of the Virtual Boy's 3D effect but stated that it resembled tennis rather than squash.

[12] The Japanese book Virtual Boy Memorial Commemorative Guidebook gave it a negative outlook, noting its low difficulty level and unispired character designs but commended the arenas.