Herbie: Rescue Rally provides extreme race courses filled with ramps jumps hills and tunnels for the player to speed through. The game's twisting and turning arcade-style racing is put into overdrive with exciting elements such as short-cuts pick-ups and wacky Herbie special moves. Herbie's accelerating endeavors take place both on the track and off-road demanding players draw on all their driving skills to become a champion.

Herbie comes to the rescue of Louise Noble whose family's beloved animal sanctuary is in danger of being taken and turned into a toxic chemical factory by the dastardly Edward Vile and his E. Vile Corporation. Louise's only hope is to win the Cross States Rally and use the $1 million prize money to save the sanctuary. The game follows the adventures of Louise and Herbie as they attempt to win every event in the Grand Race going against Herbie's evil opponent Herman who is actually owned by the E. Vile Corporation.