The game is set in an open world environment; scaled-down versions of the Hawaiian islands of Oʻahu and Maui.

The Crew Motorfest is set in a scaled-down version of the islands of Oʻahu and Maui in Hawaii.

[5] The main part of the game is "Playlists", which consist of a series of staged events, side activities, and challenges.

As of September 2023, there are fifteen playlists, each with a different theme such as vintage cars, Lamborghini and collaborations with influencers such as Supercar Blondie, Liberty Walk [ja] and Donut Media.

Demolition Royale is the game's demolition derby-based battle royale mode, where up to 32 players are put into crews with the main goal of driving their demolition-type vehicles to destroy the racers of other crews in a shrinking safe area.

The Main Stage, the game's live-service mode, consists of a monthly theme with unique limited-time rewards.

[1][12] Journalists noted the similarities between Motorfest and the first two Test Drive Unlimited games (2006 and 2011), which several developers from Ivory Tower worked on previously and also share Oʻahu as a main setting.