The gameplay in Tekken 2 is much like its predecessor with a few additions. It continues to use 2D backgrounds in its stages, an infinite playing field and a fighting system that utilizes four buttons: left punch, right punch, left kick and right kick. Distinct additions included attack reversals for some characters, back throws, chain-throws and a sidestep unique to two characters, Kazuya Mishima and Heihachi Mishima. However, Yoshimitsu has a spinning sidestep move that lowers his health. Tackles were also modified to inflict damage when running from a greater distance. Each time the game is beaten with one of the default available characters in arcade mode, the associated sub-boss character becomes selectable.
Tekken 2 also introduced various modes that would become staples to the series. These include Survival mode, Team Battle mode and Time Attack mode. Survival mode takes the player through an endless number of matches to see how many opponent they can defeat without being defeated themselves. In addition, any health lost during a match will carry over to the next match, but the player would regain a little bit more health. Team Battle mode is a two-player mode which up to eight characters can be selected by each player. Like Survival mode, any health lost during a match will carry over to the next match, but the player will regain a small amount. Time Attack mode is similar to Arcade mode, except it is played to see how fast the player can go through it and beat records.