There are six licenses available in Gran Turismo 3. Five of these licenses are for traditional racing, each level more in-depth and difficult that the last, and the sixth, the Rally (R) License is for Dirt Racing. Each successive 'mainstream' license unlocks the ability to races more difficult race events. These licenses, in order of increasing level, are:

Each license is awarded by the completion of seven driving 'exams' followed by a graduation test. Each test is awarded gold, silver or bronze trophies according to performance. While all three types of trophy are considered passes, achieving all gold trophies for a particular license awards the player with a prize car.

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