Smith decides to temporarily transfer Kamiko's soul into Wang's body until he devises a way to completely heal her. Eventually, Wang reaches Kamiko and brings her to Smith. Wang reveals his presence and the Twins run off to catch him, while hordes of ZillaCorps' soldier's attacks Wang. The Twins inject Kamiko with a substance known as Compound 61, and she begins to hallucinate. He finds Kamiko tied to a table with the Kyokagami Twins inside the room and Zilla watching her through a monitor. After speaking to Mamushi, the second in command of the Yakuza, he is given a new task to rescue Kamiko, the daughter of the Yakuza's leader, from Zilla's labs. Wang accepts the task, and travels to the temple where he retrieves the artifact. Lo Wang is given a task from the Yakuza to retrieve an ancient trinket from the Temple of Longing. Killing enemies will level up weapons and reward the player with gems to augment their equipment with elemental properties and buffs. The game features over 70 different weapons, varying between firearms and blades. The game utilizes a procedural damage system that allows players to cut and blow off enemy limbs and body parts. Every mission, except for story-specific events, features a randomly generated level design and content that includes randomized map layouts, enemy positions, terrain, buildings, and weather conditions. The game features a hub area where the player can acquire quests and upgrade their abilities before beginning a mission. The mission structure in Shadow Warrior 2 is less restricted than its predecessor, and players can now revisit earlier missions to re-engage past enemies in order to upgrade Wang's skills. New traversal mechanics have been added, such as climbing walls and double jumping to allow for more exploration. The level environments are more open and nonlinear than in the previous title.

In co-op mode, each player experiences the narrative as Lo Wang but sees other players as various anonymous ninjas. Shadow Warrior 2 can be played in single-player mode, or in a new 4-player co-op mode. A sequel, Shadow Warrior 3, was released on March 1, 2022.

The game was released for Microsoft Windows in October 2016, for PlayStation 4 and Xbox One in May 2017, and Xbox Game Pass in December 2018.

It is the sequel to the 2013 Shadow Warrior, the reboot of the 1997 original. Shadow Warrior 2 is a first-person shooter game developed by Flying Wild Hog and published by Devolver Digital.

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