The only game in the series to be released in arcades (running on the PlayStation-based Sony ZN-1 hardware, which later powered Star Gladiator and Street Fighter EX), Battle Arena Toshinden 2 builds upon its predecessor by featuring a simple combo system and rebalanced 3D movement. It was released in nearly the same time as its primary competitor: Soul Edge.
Set after the original tournament, the mysterious Secret Society has organized another underground tournament to lure the original tournament's organizer (Gaia) and the original challengers to their deaths.
The game received two ports, both developed by Tamsoft, throughout 1996. It was quickly ported to the Sony PlayStation in Japan on December 29, 1995 (published by Takara), which was later released in North America (on May 23, 1996 by Playmates) and Europe (on June 1996). A "Plus" update was released for the Japanese version on August 9, 1996. The second port was for the PC (running Windows), featuring support for 3D accelerator cards and modem-based multiplayer. The game was also the basis for the Sega Saturn side-story Battle Arena Toshinden U.R.A., which features changes to the roster, arenas, gameplay, and storyline.
The game includes 11 playable characters from the start (two of whom are new additions and one of whom was the final boss of the original game). In addition, the game includes two new bosses and two secret bosses (one of whom is the secret boss from the original game).
- Uranus (sub-boss, unlockable with a cheat code)
- Master (final boss, unlockable with a cheat code)
- Vermilion (secret boss, unlockable with a cheat code)