Urban Strike is a helicopter based shoot 'em up, mixing action and strategy, retaining its predecessor's core mechanics, and expanding on the model with additional vehicles and settings. This time, the campaign takes the player all over the North American continent, beginning in Hawaii and moving through locations in Mexico, San Francisco, New York, and Las Vegas.

The main model helicopter used in this game is known as the Mohican, which is designed for speed and combat. A larger, heavier model called the Blackhawke (designed for large-scale rescues) can be flown during the first two levels, and an experimental Ground Assault Vehicle (GAV) can be stolen and piloted in the third level. A new feature introduced in this game is on-foot missions, where the player is required to leave the helicopter at certain points and enter internal environments armed with a rifle and missile launcher.

Levels consist of several missions, which are based around the destruction of enemy weapons and installations, as well as rescuing hostages or prisoners of war, or capturing enemy personnel. The Mohican helicopter is armed with machine guns, more powerful Hydra rockets and yet more deadly Hellfire missiles. The more powerful the weapon, the fewer can be carried: the player must choose an appropriate weapon for each situation.

The player's craft has a limited amount of armor, which is depleted as the vehicle is hit by enemy fire. Should the armor reach zero, the craft will be destroyed, losing the player a life. The player must outmaneuver enemies to avoid damage, but can replenish armor by means of power-ups or by airlifting rescued friendlies or captives to a landing zone. The Mohican has a finite amount of fuel which is steadily depleted as the level progresses. Should the fuel run out the Mohican will crash, again costing the player a life. The craft can refuel by collecting fuel barrels. The helicopter also carries limited ammunition, which must be replenished by means of ammo crates.