The second Panzer Dragoon game is not a sequel, but a prequel to the first, and is also set in a post-apocalyptic word where mankind struggles against forces of nature, trying to re-build their civilization.
The game follows the story of a boy named Lundi who lives in a frontier town. The area is populated by mutant animals called "khourieats". The town inhabitants see them as bad omens and kill them. One day Lundi finds a small khourieat with wings. Instead of killing it, Lundi hides it and keeps as a pet. After his town was destroyed by an ancient weapon, Lundi sets on a long journey with his pet, who will soon become a powerful dragon.
Like the first game, "Panzer Dragoon Zwei" is a rail-shooter. You follow a pre-set course and use your dragon's special abilities to dispose of the enemies. Your dragon can evolve during the game and gain more powerful attacks, which signifies a step towards a real RPG like Panzer Dragoon Saga.