Users can choose to toggle communications, avatars, and avatar features based on their trust level. This is followed by 'User' (green), 'Known User' (orange), 'Trusted User' (purple), and friends (yellow). When prompted to 'New User' (blue) rank, they are given the ability to upload their own content using the VRChat SDK. All users begin at the 'Visitor' rank (grey). Users of VRChat are classified into various 'trust levels', based on factors such as their use of the platform. In 2022, support for the Open Sound Control (OSC) protocol was added for more advanced interactions with external software and devices. A third-party compiler, UdonSharp, was developed to allow world scripts to be written in C#. While still considered alpha software, it became usable on publicly-accessible worlds beginning in April 2020. In 2020, Vrchat introduced Udon, a visual programming language which uses a node graph system.

Some limitations exist in desktop mode, such as the inability to freely move an avatar's limbs, or perform interactions that require more than one hand. VRChat is also capable of running in 'desktop mode' without a VR headset, which is controlled using either a mouse and keyboard or a gamepad. Trends and variations of avatars spread through the community like memes, and avatars themselves are sold on places like booth.pm or given for free. Player avatars are capable of supporting lip syncing, eye tracking, and blinking, in addition to mimicking head and hand motion. Avatars and worlds are created and uploaded by their users using a software development kit for Unity released alongside the game.

The game is made up of thousands of connected worlds, in which players can interact with each other through virtual avatars. VRChat 's gameplay is similar to that of games such as Second Life and Habbo Hotel.

Free booth models vrchat