Space Raiders is a third-person shooter taking place after an alien invasion of Earth. The game is a spin-off of Taito's Space Invaders with similar gameplay but in a 3D destroyed city setting.

The player can take control of three characters. These are Justin, a youngster knocked out and left for dead after his friends got slaughtered while on the run from the aliens, Ashly, the camerawoman who is trying to find her boyfriend who went missing after the invasion, and Naji the policeman who lost his partner in a fight with the aliens.

Gameplay includes shooting at the aliens while moving your character along the bottom of the screen while the aliens come towards you. The player has to move around and evade incoming bullets and aliens.

Cover can be taken behind barrels and other obstacles. These however can only take a certain amount of damage before being destroyed. The game offers a story and survival mode which can be played solo or in co-op.