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In Team Race, the player competes as a single playable character with two teammates to race with and rival teams to race against. Up to four teams of three can compete in this Event, for a total of twelve racers at a time. The teams' different standings during a race are displayed on the left side of the HUD and is constantly updated. Each team on this display also has its own color, which makes it possible to identify the characters who are backlit with these colors. Out on the race track, rival racers are highlighted in red.
In Team Race Events, the player competes in a three lap race on different tracks. These races adhere to the basic rules and gameplay mechanics in Team Sonic Racing. As such, players can pick up power-ups from the Item Boxes on the race tracks and use them against rival racers. Teammates, however, are unaffected by the player's power-ups. The players can also pull off various team maneuvers, such as the Item Box Transfer, Slingshot, Skim Boost, Rival Takedown and Team Ultimate.
The goal of the players on a team is to get the best position possible in the race. Each race will conclude once the all the players reach the finish line. However, when deciding the winning team, the players on each team all contribute individually to the team's final place in the race, meaning crossing the finish line first will not always be enough. Instead, the team gets points based on their members' final positions in the race. The better the members' final positions in the race are, the more points the player's team will receive. When reaching the result screen, points will be assigned for each racer's final position (15 for first place, 12 for second, then 10, 9, 8 and so on), and totaled up for each team. The team with the highest total score are declared the winners of the Team Race.