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Chocobo's Dungeon 2 is a sequel to Chocobo's Mysterious Dungeon. Unlike its predecessor, it was released in North America, in late 1999.
The player plays as Chocobo who explores dungeons with a monster partner, which can be controlled by a second player. The dungeons are randomly generated. The battle system is not like those of most Final Fantasy games—it is more action oriented, allowing the player to walk around and position their chocobo strategically for battle.
Perhaps the most unique feature in Chocobo's Dungeon 2 is the item system. Though having claws, collars and saddles as equipment is a novelty by itself, the most unique feature is the fusion system. Stoves allow the player to combine claws or saddles to create newer, more powerful ones. As for the magic system, the player must collect books and use them against enemies in which the corresponding spell element will level up. Feathers can be collected to change the area of effect of spells, or allow the player to unleash new types of spell effects.
When Chocobo is KO'd, he loses all his items and gets transported back to the village, forcing the player to restart the dungeon or resume from a shortcut. Some of the items lost may occasionally drift ashore for the player to recollect at a later time. As the game progresses, Chocobo can obtain gil and buy items in a nearby village, or rent storage space to store items, safeguarding them in the event that Chocobo is KO'd.
Chocobo's Dungeon 2 sets in an unnamed village inhabited by monsters. Up north the path leads to Cid's Tower and east of the village leads to a beach on a lake that opens to a vast sea. North off the path leads to a forest, a swamp, and a large mountain known as Snow Mountain. Also across the lake is the mysterious dungeon. Throughout the game, the world map changes a few times.
- Chocobo - The protagonist of the series, Chocobo and Mog go treasure hunting one day and find the mysterious dungeon and venture deep into it. The player always controls Chocobo in the game; he is able to equip claws as weapons, saddles as armor, and collars as accessories. Chocobo can also equip stones and empty bottles to kick at enemies or use to venture to secret areas of a dungeon floor.
- Mog - Chocobo's friend, he becomes a partner in the beginning and in the Final Dungeon. He is able to steal items from enemies if Chocobo does not have any items or only has a few.
- Shiroma - A White Mage with a mysterious past who was hated by everyone in the village for being a human, she partners up with Chocobo in the beginning and in the Sea Floor Dungeon. She is able to heal Chocobo once every floor depending on Chocobo's level.
- Cid - A machinist who lives in a tower far from the village. Being a human, he was despised by everyone in the village. He helps Chocobo in Cid's Tower when it is under attack by imps, and on the way to Snow Mountain. As a person of machines, Cid has a high attack stat and is able to plant mines if Chocobo talks to him in the dungeon area.
Other than these four, there are other characters from the village in the game that will help Chocobo in some way (e.g.: Chubby Chocobo buys and sells items, Gamedon repairs Chocobo's claws and saddles, the Black Mages offer Chocobo Dispel Tonics and use of the stove, etc).
One day, Chocobo and Mog go treasure hunting when they find a large cave that leads to a dungeon. While traveling through the dungeon floors, they find a lever. Mog decides to pull it and a trap shoots Chocobo out of the dungeon. When he comes to, Chocobo meets Shiroma. Being a human, Chocobo hesitates to come to her. When she leaves, Chocobo follows Shiroma and eventually meets her again in the dungeon and tells her about Mog. They team up to get to the dungeon's core and find Mog who is trying to open a jeweled door. Shirma warns Mog that whatever is inside the door might be dangerous, but he does not listen to her. Mog finds a large crystal on a pedestal and tries to grab hold of it, but the crystal began to respond erratically and so the dungeon collapses to the lake. The three get washed ashore to a nearby village.
Chocobo and Mog need to find their way back to the dungeon. New characters are met, new adventures to face, and secrets are revealed about the mysterious dungeon, and Shiroma's mysterious past is slowly uncovered...