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As the name suggests, it is a canyon-filled level with a large number of rails which most of the level is spent grinding upon. This stage is quite long, and for the majority of it, there is no solid ground. Completing this stage leads to Bullet Station.
After defeating an army of robots in Robot Carnival, Team Sonic goes to destroy Eggman's base before sundown to meet their three-day deadline. Team Dark must find the entrance to Eggman's base to interrogate the doctor. Team Rose must go beyond the rails to find Froggy and Chocola, and Team Chaotix must infiltrate the terminal station as ordered by their client.
The following is a list of requirements to attain a rank for each mission with each team.
During the Team Chaotix mission, if the player uses the Leaf Swirl to go through the laser security, then switch to Charmy or Vector, it is possible to get to the teleport flower without activating the switches.
On the Team Chaotix variant of the stage using other teams, there aren't any objects (such as Goal Rings, Rail Switches, Poles, Hint Collisions, Springs and Trains) placed on that level other than the global and decoration layouts making it impossible for players to reach further parts of the level including the pole that appears inside the structure located at the roundabout rail area and being able to complete the level. Although the Team Chaotix edit is considered to be the 7th level of the game, it is the 50th level according to the game files and 36th in the executable. Like Mystic Mansion, all players start at the exact point as Team Chaotix on this stage edit. Unfortunately, the Chaotix segment beyond the train station should have been included as an alternative route on the original Rail Canyon level to let other teams opt for this rather than having to use the first route where they fly up the fan onto the rails. For Team Chaotix's layout in the original version of the level, there are four Power Formation signs placed at the first checkpoint and the switchable neon grind rails.
In Super Hard Mode, the rail boosters in this stage launch Team Sonic at an extremely fast speed on the rails, which may make jumping to a parallel rail slightly more difficult.
There are rock formations in this stage that resemble the Jack o' Lantern rock formations from the Pumpkin Hill stage in Sonic Adventure 2. There are also a few formations that resemble witches' hats.