Dragon Ball Z: Budokai 2 (ドラゴンボールＺ２) is a fighting video game developed by Dimps Based upon the anime and manga series, Dragon Ball Z, it is a sequel to Dragon Ball Z: Budokai and was published by Atari for the PlayStation 2 and GameCube on December 4, 2003, and by Bandai in Japan on February 5, 2004 for the PlayStation 2. In 2004, the sequel Dragon Ball Z: Budokai 3 was released. The World Tournament allows players to compete against up to 8 players in a Martial Arts Tournament. If more than one human player is present no prize money is available, but with only one human player prizes can be won. Dueling mode allows a player to fight the computer at a preset skill level, or two human players to fight each other using any custom skills. A player may also watch a fight between two computer fighters. Made up of three sections, the Skill Shop, character editing, and instructions. A player may edit skills on either memory card. Aside from Dragon World, the Skill Shop is the place to get your skill capsules. Bulma will wear a different costume depending on how many the player has collected in Dragon World. Each character has a Health bar, and a Ki bar. When the health runs out, the character loses (as in most fighting games). Ki is required to perform special moves, and Ki blasts. Characters can dodge attacks. There are varying mechanics for ultimate moves, some will automatically work upon their execution, some require a button input within a certain timeframe, some require rotating the control stick to build power, and some require both players to rotate control sticks in a struggle.

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Story mode in Budokai 2 consists of a board game-like adventure called Dragon World. In this mode, the player incarns Goku who, along with one or more allies, travel around the 9 different levels defeating enemies and collecting items such as money, capsules or Dragon Balls. Once the game is completed, if all seven Dragon Balls are collected, the player is able to make a "wish" which lets him choose one from three special capsules, which include Breakthrough Capsules (these allow a player to use all of a character's moves and abilities at once), Fusion capsules, and Bulma costumes.