NBA All-Star Challenge 2 is a basketball game with six mini games, mostly based on real-life one-on-one variants. The main differences to the predecessor are the new mini game Slam Dunk (replaces H.O.R.S.E.) and slightly reworked graphics for the others. Before each game, the player can choose between 27 real-life athletes, one from each NBA team's 1991 roster. All games can be played by two players via the Game Boy link cable.

The disciplines are:

One On One: A standard one-on-one match which is restricted to the area directly before the basket. The winning condition can be set before starting the match: either scoring a certain amount of points or scoring the most within a certain time frame.

Free Throws: This mini game is about a free throw, i.e. trying to score from a fixed place without getting disturbed by an opponent. A cursor automatically moves around the basket and when the player presses the button, the athlete throws the ball to the cursor's position. The number of throws can be set before the game.

Three Point Shootout: There are five marked points around the basket; directly at the border where scoring rewards three points. The athlete stands at each point for a certain amount of time before he switches to the next point. A throwing attempt is simply performed by pressing the button twice: first for jumping and the second time for throwing the ball. This mini game is available in a training and a competitive variant.

Slam Dunk: Before each round, the player selects the performed dunk variant from a list. This mode is shown from the side, the player moves towards the basket and has to press the right button with the correct timing to score. This mode is available in a training (the game gives a few pointers for the timing) and a competitive mode.

Accuracy Shootout: Works similar to Three Point Shootout with the difference that the points are spread all over the area. The player needs to walk to the spot and, if the previous shot was missed, collect the ball from the place it bounced to. The player can either set the points manually before the mini game starts or use the random generator.