M&M's Kart Racing is a kart racing game in which players control one of the selectable characters who race in karts in different race tracks that vary in shape and theme.
Players can choose from seven different race vehicles which can be customized in the M&M'S garage. Races take place in street, dirt, ice and sand environments which affect vehicle handling in different ways. The cups of coffee placed on the ground around the tracks give players a boost, resulting in the utterance of the infamous "Approaching sound barrier". When the player reaches 200 mph the player will begin "Approaching sound barrier". The player will also pick up chocolate coins scattered across the raceway, but they have no purpose outside of arcade mode, where players must collect all the chocolate coins to proceed to the next raceway. To get a turbo boost at the start of a race, players must spin their Wii Mote. Unlike other racers, to turn their vehicle a player also must spin the Wii Mote as opposed to tilting the controller like a steering wheel.