Hugo 2 takes place after the events of the first game, where Hugo's family is on a flight back home in his biplane. The evil witch Scylla has obtained an ancient magic book that allows her to control the weather, and she uses this power to send a menacing cloud after them.
Scylla's cloud catches up to the plane and snatches Hugoline, leaving Hugo no choice but to crash-land on a snowy mountain. With his family in danger, Hugo sets out on a quest to rescue them.