Xanadu: Scenario 2 is an expansion pack to Xanadu: Dragon Slayer II. Just like the original game, it is not particularly story-driven; once again, the player is thrown into the medieval fantasy world as a lone nameless hero, who must explore the maze-like environments and stay alive in the process.
This add-on scenario features new, more complex maps, new enemies (including bosses), and a trading system which allows purchasing items in one shop and selling them for profit in another. Otherwise, the gameplay system remains identical to that of the predecessor; with side-scrolling exploration, separate top-down battle screens, "bumping" action-based combat, and role-playing system with levelling up, equipment, etc.
The game requires the original Xanadu to play; character creation must be done with the original game discs inserted, after which the player can directly access this scenario.