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Eye of the Beholder II: The Legend of Darkmoon is, like its predecessor, a first-person dungeon-crawling role-playing game based on the second edition of AD&D rules. It uses the same point-and-click gameplay mechanics and controls as the first game, with only minor changes. The game is set entirely in pseudo-3D maze-like areas; no automapping is available. Combat flows in real time, and characters can move as a single unit to lure enemies or avoid blows.
A starting party consists of four characters, which can be transferred from the earlier game or created from scratch. Six classes (Fighter, Ranger, Paladin, Cleric, Mage, and Thief) are available. Characters can reach higher levels and learn new spells, must face new and tough monsters, and solve multiple puzzles. Compared to the first game, many more illustrated NPC encounters and cutscenes were added.