Wizardry Gaiden II is the second in the Japan-exclusive Wizardry Gaiden series. The scenario was written by the Japanese author Benny Matsuyama, and is not based on any Wizardry game developed by Sir-tech. Developed by ASCII, the same company that created console versions of other Wizardry games, Wizardry Gaiden II shares many similarities to other console entries in the series in style.

The game takes place in the city of Al-Mar, an oasis haven in the eastern desert. Workers in the city have been working tirelessly to uncover the mystery of nearby ruins, but to no avail. Near-daily cave-ins have killed or stranded many, and the labyrinth's mysteries only seem to deepen. It isn't until a warning carved into a metal plate is discovered that the people of Al-Mar realize the great evil they have awoken: their city was built upon the grave of the ancient sorcerer-emperor Harugisu.

Many who had lost their lives exploring the cave rose from the dead, the the city hung in darkness. Not even the Chamberlin Udin was spared, his own daughter seemingly overpowered by the darkness that has enveloped the city. His own soldiers refused to enter the labyrinth, and the situation grew dire. It was when things grew the darkest that Udin began to look to adventurers, passing through the oasis on their way to the other side of the desert, for help.

You are one such party of adventurers. You create a party of up to six characters to explore the maze in first person. Turn-based random encounters provide you with experience points and gold, which can be used to increase the power of characters and purchase better equipment. While the enemies are difficult, the most difficult foe is the maze itself, which is filled with fake walls, pits, hidden doors, and sudden teleporters designed to disorient you. Becoming lost in the labyrinth can be certain death, as the only way to replenish magic and gain levels is to return to the town on the first floor of the dungeon. An auto-mapping feature (which can be disabled) can be used on all but the lowest floor of the dungeon.

The dungeon contains eleven floors, though floors are 16x16 (compared to the 20x20 of other console Wizardry games). The gameplay features, such as spells, classes, and races, remain unchanged from the first Wizardry Gaiden title. The closest gameplay comparison to the main Wizardry series would be Wizardry V: Heart of Maelstrom, since many of the gameplay changes from that title are included.