Battle Race is a modified version of the regular Race in Sonic & All-Stars Racing Transformed. Five racers take part in it, including the player's character. Each racer receives three life points, which are displayed as three lights beneath the lap number in the upper left corner of the HUD. To win the Battle Race, the player must either eliminate the opponents during the race or take first place after three laps. The player can eliminate enemies by dealing damage to them. To damage a racer, the player can collect power-ups from the Item Boxes on the track and use them to attack opponents. Alternatively, the player can push the opponent off the road in order to damage them. After taking damage, the racer 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 racer becomes immune to impacts for a few seconds, which is indicated by the racer flashing. After losing all three health points, a racer will be eliminated from the race. The player themselves can also receive damage by getting hit by their own Item Box power-ups or by falling off the road.
The player can choose the level of difficulty (C for Easy, B for Medium, A for Hard, and S for Expert). The higher the level, the more stars the player will receive for their victory (from 1 for Easy to 4 for Expert).
Battle Race can also be played in multiplayer modes.