The Ghoul realm is under attack by a mysterious force and aspiring warrior Firebrand sets out to save it.

As in its predecessor, gameplay in Gargoyle's Quest II is divided into an adventure-like and an action part. During the adventure parts, Firebrand explores a world map and several villages from a top-down perspective, talking to his fellow ghouls and zombies to advance the story or receive important items. Action parts are seen from a side-scrolling perspective. In these parts of the game, Firebrand has the ability to jump, cling to walls, fly for a limited amount of time and shoot fireballs at his enemies. As the game progresses, Firebrand becomes more and more powerful, receiving items that improve his agility, armor or attack power.