NASCAR Racing 4 built upon the foundation of its predecessor with a series of advances that addressed the most frequently requested improvements from the simulation community. The most significant technical leap was the introduction of full 24-bit colour rendering, replacing the 256-colour limitation that had constrained earlier entries. Car models and track environments were substantially improved, and for the first time in the series a car could rotate fully in three dimensions — meaning vehicles could become airborne and flip, more accurately representing the consequences of high-speed contact.
The game included all 21 tracks raced on the 2001 Winston Cup schedule, and was the first entry in the NASCAR Racing series to feature Daytona International Speedway. It was also the first since NASCAR Racing 2 to feature actual car manufacturers, and the first in the series capable of fielding a full 43-car grid.
The roster included 25 of the drivers and teams anticipated to compete in the 2001 season. Among them was Dale Earnhardt, included because the game shipped on 6 February 2001 — twelve days before Earnhardt's fatal crash at the Daytona 500. The remaining grid slots were filled by 42 fictional drivers and teams, many carrying fictionalised sponsors or liveries associated with Sierra Entertainment affiliates, continuing a practice that had begun with NASCAR Racing 1999 Edition.
The game retained the core feature set of the series: testing, single race weekends, full championship seasons, and online multiplayer hosted through Sierra's servers or third-party clients. A more detailed paint shop was accessible through the opponent manager menu, allowing players to import and export custom paint schemes. For the first time, the paint shop also supported custom pit crew uniforms. A replay viewer allowed saved session footage to be reviewed.
The simulator continued the series' emphasis on accurately modelling the physical demands of driving a stock car at racing speeds, including tyre behaviour, drafting dynamics, and setup sensitivity.
NASCAR Racing 4 was followed by NASCAR Racing 2002 Season.
The game received generally favourable reviews and sold approximately 260,000 units in the United States, earning approximately $10.4 million by August 2006. It ranked as the 76th best-selling computer game in the United States between January 2000 and August 2006, and combined sales of all NASCAR Racing titles released over that period reached 900,000 units.
Computer Gaming World nominated it for Best Simulation Game at its 2001 Premier Awards, noting that the game "continued to make us believe in the complex strategy involved in driving around in circles at 200 mph." Computer Games Magazine named NASCAR Racing 4 the best racing game of 2001 at its 11th Annual Computer Games Awards, describing it as "the crown King of racing games." GameSpot awarded it Best Driving Game in its Best and Worst of 2001 Awards.
NASCAR Racing 4 arrived near the peak of Papyrus's influence on PC sim-racing. The studio had established the genre's benchmark with Indianapolis 500: The Simulation in 1989 and built a sustained reputation for faithful NASCAR simulations through the 1990s. NASCAR Racing 4 represented the series at its most polished before Papyrus shifted focus to Grand Prix Legends and the subsequent development of iRacing's founding technology. The game remains a reference point for enthusiasts of early-2000s NASCAR simulation.