The player plays as SpongeBob brawling against other competitors in a Bikini Bottomkarate championship. The player uses the A key combined with the left or right arrow key to punch, and the S key combined with the left or right arrow key to kick in the desired direction. The left and right arrow keys are also used to dodge attacks from the player's opponent.
When the bar is full SpongeBob can use a special attack (which is throwing Gary onto the opponent which he scratches). SpongeBob must attack his opponents until their green health meter turns red and they are defeated while also trying to dodge their attacks to make sure he is not defeated himself.
After SpongeBob defeats Patrick, Sandy, and Squidward, he wins the championship and beats the game. There is also a hardcore mode unlocked after beating the normal mode. In it, all the opponents are wearing black belts and the game is much harder.