After the events of the first game, Alchemist, one of the three main classes, is corrupted by the Emberblight from the heart of Ordrak, the main source of corruption beneath the town of Torchlight. Now he is on a rampage for taking the power of guardians and breaking the balance of elements. New heroes arrive to rise up against his madness with the help of the destroyer and the vanquisher, other two playable characters from the first game.
Many elements from the original hack-and-slash RPG Torchlight (fishing, pets, etc) make a return in the sequel, including the randomly generated dungeons. There are more classes, pets and weapon types and the locations to visit are more varied. There are now snowy areas, deserts, forests etc. Instead of the dungeon descending structure of the original game, the sequel has large above-ground environments with hub towns and each one has a couple of separate dungeons that consist of one floor or multiple ones. Unlike the first game multiplayer is now supported through cooperative sessions for up to six players, both locally and online. There are three acts and an epilogue.
Other new elements are time of day cycles, an updated interface design, and various weather effects. The character appearance can be fully customized based on various attributes.