Grand Theft Auto 2 is set in a huge city with three districts: downtown, residential, and industrial. The story takes place in an undisclosed future time period where the player must earn respect from seven different gangs by causing chaos and destruction throughout the town. As the player completes missions and commits crimes, they will gain notoriety and attract the attention of the police.
The gameplay involves exploring the city, answering phones to initiate missions, and stealing vehicles. To unlock new districts, the player must reach a certain score by committing crimes and completing missions. The player can choose to ally with one gang, but doing so will decrease their reputation with other gangs. As the player commits more crimes, they will become wanted by the police, who will eventually escalate from SWAT teams to army units.
Other features include the ability to save at a church when donating enough money and various side missions, such as becoming a taxi driver to earn extra cash. The game also includes new cars with unique attachments, like a firetruck with a flamethrower or a car with machine guns. Additionally, the PC version allows for adjustable time of day, while the PlayStation version is limited to noon, and the Dreamcast version only at dusk.