The Archmage Khelben summons the Heroes of Waterdeep, slayers of the Beholder Xanathar, for another mission. Strange things are happening in the forests near Waterdeep, centered around the Temple Darkmoon. People have been disappearing and shallow graves containing human remains have been found. Khelben teleports the party to the forests near Darkmoon so they may find out what kind of evil is working in the towers of the temple.
Eye of the Beholder II: The Legend of Darkmoon is, like its predecessor, a first-person dungeon-crawling role-playing game based on the second edition of AD&D rules. It uses the same point-and-click gameplay mechanics and controls as the first game, with only minor changes. The game is set entirely in pseudo-3D maze-like areas; no automapping is available. Combat flows in real time, and characters can move as a single unit to lure enemies or avoid blows.
A starting party consists of four characters, which can be transferred from the earlier game or created from scratch. Six classes (Fighter, Ranger, Paladin, Cleric, Mage, and Thief) are available. Characters can reach higher levels and learn new spells, must face new and tough monsters, and solve multiple puzzles. Compared to the first game, many more illustrated NPC encounters and cutscenes were added.