Bubsy 3D is the fourth Bubsy game to date, and the first title in 3D; the game was released in 1996 for the PlayStation video game console. It is a sequel to the original in terms of the story and takes place on the Woolies' home planet, Rayon. Bubsy 3D has 16 main levels and two boss levels and the main character's goal is to defeat the two queens of Rayon, Poly and Esther. The player can collect rockets, as well as atoms, in order to eventually escape from planet Rayon. The graphics are very simplistic, even for their time, with a dense fog that covers entire levels throughout the game. Bubsy actively speaks throughout the game based on various actions performed by the player. Planned releases for the Sega 32X and Sega Saturn were cancelled.

Bubsy 3D was panned by both critics due to its confusing control schemes and camera angles. It was featured on Seanbaby's EGM Crapstravaganza: The 20 Worst Games of All Time list as well as in eighth place on GameTrailers' 2006 Top 10 Best and Worst Games list, where it was described as "a terrible, terrible clone".