The game begins with the city of Llylgamyn under siege. Llylgamyn's rulers have been killed, and the city's only hope is for the recovery of the staff of Gnilda, only obtainable from trading the mystic "Knight of Diamonds" armor from the legendary Knight of Diamonds to fend off the invaders.
The game's title screen
The game functions virtually identically to the first scenario, Wizardry: Proving Grounds of the Mad Overlord, with the player guiding a party of up to six adventurers into a 6 level dungeon. The original version required players to import characters from the first game, whilst later versions include a pregenerated party and the ability to create new characters. As the game is intended to be played by those who have successfully completed the first game, the difficulty level is intended for characters of at least level 13, and no training area means that lower level characters will go through a "baptism by fire". Mechanical differences include the ability to save the game in the dungeon rather than forcing the characters to exit the dungeon and return to the training grounds, and some of the spells increasing in power (as noted by a message in the dungeon).