The player, controlling a tank, must destroy enemy tanks in each level, which enter the playfield from the top of the screen. The enemy tanks attempt to destroy the players base (represented on the map as a bird, eagle, or Phoenix), as well as the human tank itself. A level is completed when the player destroys all 20 enemy Tanks, but the game ends if the players base is destroyed or the player loses all available lives.
Battle City contains 35 different stages that are 13 units wide by 13 units high. Each map contains different types of terrain and obstacles. Examples include brick walls that can be destroyed by having either the players Tank or an enemy Tank shoot at them, steel walls that can be destroyed by the player if he has collected three or more power-up stars, bushes that hide Tanks under them, ice fields that make it difficult to control Tank and pools of water which cannot be crossed by Tanks. There are four progressively harder types of enemy Tanks. The game becomes more challenging in later levels, as enemy Tanks may act as decoys to lure players away from their base so that another Tank can destroy it. In addition, flashing Tanks could be destroyed for power-ups. There are several types of power-ups: Tank symbol gives an extra life, star improves players Tank (having one star make shots faster, having two stars allow two simultaneous shots, having three stars allow the player to destroy steel), bomb destroys all visible enemy Tanks, clock freezes all enemy Tanks for a period of time, shovel adds steel walls around the base for a period of time and shield makes players Tank invulnerable to attack for a period of time.