In Sengoku 2, a warrior from the future is summoned by a prophetic princess to feudal Japan, where an evil monarch has gained supernatural powers to control the dead. The player must battle through armies of reanimated souls to restore peace to a land where the weak have fallen prey to the strong.

The story given by SNK is as follows:

"A time of Sengoku, it's the weak becoming the victims of the strong. It began when a monarch got evil powers. He awakened peacefully sleeping souls and used his power to control them.

But there was hope for those who has everything taken away by the monarch.

A princess looked into the future and predicted an evil monarch would be born and she knew a strong soldier would appear in the future. The princess called to the soldier with her whole spirit..!!"