Like Survival mode, any health lost during a match will carry over to the next match, but the player will regain a small amount. Team Battle mode allows the player to select up to eight characters to participate single-round matches. 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. Survival mode takes the player through an endless number of matches to see how many opponent they can defeat without being defeated themselves. These include Survival mode, Team Battle mode and Time Attack mode. Tekken 2 also introduced various modes that would become staples to the series.

Each time the game is beaten with one of the default available characters in arcade mode, the associated sub-boss character becomes selectable. Tackles were also modified to inflict damage when running from a greater distance. However, Yoshimitsu has a spinning sidestep move that lowers his health. Distinct additions included attack reversals for some characters, back throws, chain-throws and a sidestep unique to two characters, Kazuya Mishima and Heihachi Mishima. 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. The gameplay in Tekken 2 is much like its predecessor with a few additions. It was followed by a sequel, Tekken 3, in 1997. Tekken 2 was a critical as well as commercial success, becoming one of the best-selling PlayStation games with about 40,000 arcade units and 5.7 million PlayStation copies sold worldwide.

The home version also introduced new, now-staple game modes to the series. There are 10+ playable Tekken Fighters in the game's arcade version and up to 25 on the roster in total, including eight new ones in the console version. The arcade version was later released in Tekken 5 's Arcade History mode for the PlayStation 2. It was originally released for arcades in 1995, and ported to the PlayStation a year later. Tekken 2 is a fighting game, the second entry in the Tekken series.

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