Because Vice City was built upon Grand Theft Auto III, the game follows a largely similar gameplay design and interface with GTA III with several tweaks and improvements over its predecessor. The gameplay is very open-ended, a characteristic of the Grand Theft Auto franchise; although missions must be completed to complete the storyline and unlock new areas of the city, the player is able to drive around and visit different parts of the city at his/her leisure and otherwise, do whatever they wish if not currently in the middle of a mission. Various items such as hidden weapons and packages are also scattered throughout the landscape, as it has been with previous GTA titles.

Players can steal vehicles, (cars, boats, motorcycles, and even helicopters) partake in drive-by shootings, robberies, and generally create chaos. However, doing so tends to generate unwanted and potentially fatal attention from the police (or, in extreme cases, the FBI and even the National Guard). Police behavior is mostly similar to Grand Theft Auto III, although police units will now wield night sticks, deploy spike strips to puncture the tires of the player's car, as well as SWAT teams from flying police helicopters and the aforementioned undercover police units, à la-Miami Vice. Police attention can be neutralized in a variety of ways.