Battle Arena is a combat event that takes place in different arenas rather on race tracks. The player's goal is to eliminate all the opponents and be left as the last player standing.
For Battle Arena, the players each receive three life points. These life points are displayed as three lights in the upper left corner of the HUD. The player can eliminate opponents by dealing damage to them. To damage a player, the player can collect power-ups from the Item Boxes in the arena and use them to attack the players. Alternatively, the player can push the opponent off the arena in order to damage them. After taking damage, the opponent loses one life point, causing their health points on the HUD to change from green to yellow. Similarly, taking damage twice makes the life points change from yellow to red. Also, after taking damage once, the player becomes immune to impacts for a few seconds, which is indicated by the racer flashing. The player themselves can also receive damage by getting hit by Item Box power-ups or by falling off the road.
After losing all three health points, the playable character becomes a ghost, which is displayed by the jade haze surrounding the playable character. Playable characters in this state are immune to attacks and can still drive around the arena. However, they cannot collect Item Box anymore. As a ghost, the player can drive into enemy players in order to deal damage. If a ghost eliminates a non-ghost player, they will regain their three life points, and the attacked player will become a ghost themselves.
When the last active player is left on the track, a time counter will appear on the top of the screen's HUD, which will start counting down the time in seconds. When this time counter hits zero, the Battle Arena event will end and the players will be given their final positions in the event, similar to that in races. In Battle Arena however, a player's final position will depend on whether the player was a ghost, whether they stayed alive, and how many points they have earned.
Battle Arena can only be played in the game's multiplayer.