After Jak stopped the Dark Maker menace in his last adventure, cities were rebuilt, people flourished and sports reemerged to fill the void. Combat racing became the biggest sport of all, as the excitement of high-speed competition brought crowds to the track. Kras City led the way, with people flocking to the dangerous city of death and intrigue. When Jak and Daxter receive a mysterious invite to Kras City for the reading of Krew's Last Will and Testament, they find that they have been joined by familiar faces such as Ashelin, Keira, Samos and Torn. When Krew reveals in his recording will that everyone present, including his daughter, Rayn, has been poisoned, everyone is shocked.

Krew gives everyone an ultimatum – the only way to get the poison antidote in time is to race for him in the next Kras City Grand Championship, or they will all die. Now, Jak and his friends are forced into a high-speed contest for their lives, as they are swept up into a deadly plot to win the biggest racing event on the planet – against the best drivers in the world. With a deadly objective ahead of them, Jak and his friends take to the treacherous terrain as they are thrown into the driver’s seat and find themselves racing against time in order to save their lives.