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Knights of Valour 2: New Legend is the second expanded rerelease of Knights of Valour 2. While based on the original game's design, it features expanded stages with new routes and two new bosses. The original game's three modes return (story, internet ranking, and boss rush) along with a new "war mode" in which players take on giant waves of challenging enemies.

All 9 of the playable characters and their alternate variations from Knights of Valour 2: Nine Dragons return, but with a new feature: this game includes the character growth system introduced in Oriental Legend 2, with characters gaining levels and becoming more powerful over the course of the game. It also includes support for the PGM2's card reader accessory; by buying an IC card at their local arcade, players gain the ability to save and load their character's progress. This allows characters to retain level growth and items between runs. By starting a new character using a save from Oriental Legend 2, players can begin the game with several bonus items.