The player has a life meter that depletes upon being hit, and a timer runs during each mission. If two players reach the end together, they must each face their own clone. He can perform all of the player's attacks, and can also drain the player's energy if he gets close enough.

Doppelganger: A shadowy clone of Billy/Jimmy that the player must fight after defeating Willy in Mission 4, as the final battle of the game.

Willy: The leader of the Black Warriors, who uses a machine gun and never drops it when knocked down.

Chin Taimei: The boss of Mission 3 an agile martial artist who fights with kali sticks, which he never drops when knocked down.

Jeff: A palette-swap of Billy and Jimmy, who can perform all of their moves.

Abore: The boss of Mission 2 a large blond man in a white shirt, red pants, and sunglasses.

Bolo: A head-swap of Oharra, with longer hair.

Later in the game, he gains the ability to rematerialize himself and continue fighting. His body vanishes when he is defeated, leaving his clothes behind.

Burnov: A large man in a steel mask who is the boss of the first mission.

Oharra: A head-swap of Abobo from the first game tall, bare-chested, with a crew cut.

She is the only enemy who will pick up or carry a whip.

Linda: The only female member, who uses whips, knives, and grenades.

Roper: Another low-ranking member, who can also use knives and shovels and throw crates/logs/balls.

Williams: Low-ranking member of the gang, who uses knives and shovels.

Weapons carried by enemies include shovels, knives, chain whips, and grenades in addition, crates, logs, and steel balls can be picked up and thrown. Many of the enemy characters from the first game return for this one, but with altered appearances and new attacks, and the variety of weapons they use has been altered. The player must defeat a boss at the end of each mission, as well as one or more sub-bosses along the way. Similar to Double Dragon, the game is divided into four areas or 'missions': a heliport, a lumber storehouse, a farm, and the gang's new hideout.

A few new moves are added as well, including a Hurricane Kick. Pressing the attack button of the player's current direction will do a standard series of punches, while pressing the opposite attack button will perform a back kick. The biggest change in the game's controls are in the replacement of the original's punch and kick buttons with two directional-based attack buttons (Left Attack and Right Attack) similar to Renegade. The arcade version of the game is essentially an improved version of the original title. Once again, the players assume the role of brothers Billy and Jimmy Lee, who are now tasked with the duty of avenging Marian's death. The arcade version of Double Dragon II: The Revenge begins with Marian, the damsel in distress from the original Double Dragon, being shot to death by the leader of the Black Warriors.

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