Banjo Kazooie Nuts and Bolts is the first Xbox 360 exclusive in the Banjo-Kazooie series developed by Rare, the earlier editions having come out for the Nintendo 64. Also unlike the other Banjo Kazooie games, this one includes a deep vehicle creation system to get through puzzles. The game is to be released in North America on November 11, 2008.

Eight years after the events of Banjo-Tooie, Banjo and Kazooie are competing with the witch Gruntilda to determine the owner of Spiral Mountain. The Lord of Games (LOG) creates a series of challenges to allow Banjo and Gruntilda to compete for the deed of ownership. Banjo is simply trying to keep his home the way it is, while Gruntilda undergoes an urban development scheme.

In single player or cooperative modes, players solve puzzles with Banjo and the vehicles that they create. A deep land, sea, and air vehicle creation system is a new introduction to the series, with infinite possibilities for customization. These vehicles' abilities replace Banjo and Kazooie's abilities in the previous games. Banjo and Kazooie are also united again as one character as they were in the original Banjo-Kazooie.