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This game was made by Codemasters, the creators of the TOCA/Race Driver series. Race Driver: GRID is an arcade / tarmac racing simulator consisting of 43 cars. However, two Ferraris were removed before launch, creating a problem for 360 players who are seeking the "Drive Them All" achievement. The game features an Instant Replay feature which allows the player to rewind time by up to 10 seconds as many times as the player wants to. There is also a Flashback feature, which can only be used for a limited number of times of which is determined by the difficulty setting.

There are several modes of competition using various cars, including: GT races, open wheel races, demolition derbies, etc. There are also several tracks derived from different countries, including Japan, United States and European tracks such as Le Mans and Spa Francorchamps. A track derived from the streets of Milan is also available.