The player character has a repertoire of martial art techniques which they can perform by using the joystick and three action buttons (kick, jump, and punch) individually or in combination. Techniques range from basic punches and kicks, to more elaborate manoeuvres like hair grabbing moves and elbow strikes. When playing with another player, one can assist the other by grabbing their partner's opponent from behind. Caution should be taken, though, as some enemies are able to do the same thing to the players. The player begins the game with a certain number of extra lives and a life gauge which depletes as the player takes hits. If the life gauge runs out or the time limit reaches zero, the player will lose a life.
There is a small variety of enemy characters that the player will face through the course of the game. Certain enemies carry melee weapons, which can be knocked out of their hands and picked up to use against them. Available weapons include baseball bats, whips, throwing knives, and dynamite; in addition, rocks, oil drums, and boxes can be found in certain places.
The game is divided into four different stages or "missions," which consist of a city slum, a factory, the woods, and the gang's hideout. The game normally ends if a single player defeats the final boss alone. However, if two players manage to complete the game together, they are then forced to fight each other in order to determine who will win Marian's affections.
The original arcade version of "Double Dragon II" is essentially an improved version of the first game. The biggest change in the game's controls are in the replacement of the original's punch and kick buttons with two directional-based attack buttons (Left Attack and Right Attack) similar to Renegade. Pressing the attack button of the player's current direction will do a standard series of punches, while pressing the opposite attack button will perform a back kick. A few new moves are added as well, including a Hurricane Kick.
Like in the original game, the arcade version of Double Dragon II is divided into four missions: a heliport, a lumber storehouse, a wheat field, and the new hideout of the boss. Each stage has its own boss character with his own theme. After defeating Willy (the final boss from the original game) in the fourth stage, the player will confront a double of their own character for the game's final battle. If two players reach the end together, then both will each to have to face their own clone for the final battle.
Kunio has to go see his master, Bunzo, because he is in some kind of trouble. Kunio's brother, Tsuu, tells him to wait. Right in front of the dojo, Kunio meets Asaji and Okoto. Apparently, Asaji and Okoto are fiances and Kunio appears to be jealous. Kunio enters Bunzo's Dojo. Tora, a local ruffian, has cursed Bunzo! To get rid of the curse, he needs some Kanpou. So begins Kunio's quest! Assemble everyone! It's time for a story!
The game was originally released as Downtown Special: Kunio-kun no Jidaigeki Dayo Zenin Shuugou!, but has since been localized as Downtown Special Kunio-kun's Historical Period Drama!