New additions to the gameplay include a difficulty setting and a password system for the English version (the Japanese version lacks a password feature), taken from Splatterhouse: Wanpaku Graffiti. Each level features a boss at the end, often a grotesque monster. Rick's attacks remain largely unchanged, able to punch, kick, jump kick, and slide kick, as well as use several weapons scattered throughout the levels. The player controls Rick through eight different stages, each two-dimensional. Splatterhouse 2 features gameplay very similar to the first game. Rick succeeds in rescuing Jennifer, and the House sinks into the bottom of the river. It closes by telling Rick that it will give him power. Suddenly, the mask reappears to Rick and tempts him to find the house, telling him that Jennifer can be saved. Rick is still suffering from his guilt of being unable to save Jennifer and has been plagued by nightmares of her and the Terror Mask, which reformed after breaking at the climax of the first game. Three months have gone by since the events of the first game. It was included on the Sega Genesis Mini 2 in October 2022. The game was included as an unlockable extra in the 2010 remake.

It is the first and the only ESRB M-rated game to be released for the Virtual Console. On August 4, 2008, the game was released on the Wii Virtual Console in North America. It is the sequel to Splatterhouse, as well as the third installment of the Splatterhouse video game series, following Splatterhouse: Wanpaku Graffiti. Splatterhouse 2, known in Japan as Splatterhouse Part 2, is a beat 'em up video game developed by Now Production and published by Namco for the Sega Genesis in 1992.

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