FIA licensed Formula 1 racing game including the 2005 season teams, drivers, cars, and circuits. The player controls the car on the track and tries to either complete a lap in fastest possible time, or race against either computer controlled drivers (or in multiplayer mode, against other players) and finish in top position.

Game can be played in Quick Grand Prix, Event, World Championship, and Multiplayer modes. Quick Grand Prix selects a random car and circuit to race. Event modes are Time Attack (race against ghost car), Single Grand Prix, and Scenario Mode in which the player needs to complete different kinds of racing tasks such as completing a lap with failed brakes and pitting in to fix them. Each successfully completed scenario unlocks the next one. Additional scenarios are available for download to PSP.

World Championship mode lets the player to choose the team to race in and the championship season difficulty. All 19 circuits of the 2005 F1 season are raced in order and points for finishing in positions 1-8 are awarded. Driver with most points at the end of the season wins the championship. Before each race the player can drive practice laps to get familiar with the track and the car setup. Player can also drive a single lap qualifying run which will determine the grid position at the race start.

The difficulty levels (easy, medium, hard) define the total number of laps, weather conditions, pit stops, and tyre wear. Initially only the easy level is selectable and must be completed successfully in top three in order to unlock the medium level. In same manner, the medium level must be completed in top three to unlock the hard level. Also the Single Grand Prix Event is unlocked by successfully completing the easy level.

In Multiplayer mode, up to 8 players can play in three different race types. As in singleplayer Time Attack, each car races against top time ghost car. Both Head to Head and Single Grand Prix modes allow players to race a single grand prix, the difference being that in the latter mode, computer controlled AI drivers are entered to fill the grid if less than eight players enter.

F1 Grand Prix also includes a TV Mode Race where AI cars race each other and the player has no control, except selecting the camera view.

All 2005 season cars are initially available but the game has unlockable F1 cars from past years, such as Lotus-Climax 25, turbo powered Williams FW11, and Cosworth classics Lotus-Ford 79 and Williams FW08. Overall game style is more arcade than simulation, eg. collisions do not cause any noticeable damage, after a spin-out the car is automatically pointed to the right direction, and driving off-track slows the car down. A simple car setup system has three presets: Defensive, Balanced, and Aggressive. Player can also enable Brake Assist which automatically applies brakes in corners if the speed is too high.