Kung-fu has many different teachings, and one of them is Xianjian - magic sword. Li Xiaoyao, the hero of the first Xianjian Qixia Zhuan, has become the leader of this school. But another teaching, called Emei, is gaining popularity among disciples of king-fu. The head of Emei school, a man named Qian Ye (“Thousand Leaves”), is admired by simple people. Will there be cooperation or conflict between these two kung-fu masters?
Meanwhile, a tower where ancient demons were once sealed has been destroyed. Demons broke free and began to roam China undisturbed. Many heroes are ready to face the challenge of defeating those demons. Among those is a young man, Li Xiaoyao’s former neighbor, named Wang Xiaohu. Li Xiaoyao refused to teach Wang Xiaohu martial arts, and the boy realized that he will have to prove to kung-fu masters and the whole world that he can become a worthy heir to Li Xiaoyao and his Xianjian technique.
Xianjian Qixia Zhuan 2 is a sequel to Xianjian Qixia Zhuan, utilizing the same gameplay system as its predecessor. The player navigates the characters through isometric locations (now with pre-rendered backgrounds) and fights enemies in turn-based style, using regular attacks, sword techniques, and magic spells. The battles are also viewed from an isometric perspective, and the enemies are visible on screen before a contact with them initiates a battle. Gameplay additions include the ability to conjure powerful creatures to assist the party in combat, as well as a magic system that requires characters to mark the battle field with a particular element in order to gain tactical advantage over the enemy.
