Hidden and Dangerous 2, like its predecessor, focuses on the British Special Air Service during the Second World War. It follows the same concept as the original tactical first/third person shooter. The game's LS3D engine was used by the game Mafia.
Gameplay elements such as the vocal commands, plan or real-time map control, vehicle usage, equipment selection and the first person mechanic were significantly enhanced from the original. The ability to take POWs, added enhanced stealth options for the player which include the acquisition of enemy uniforms. Mission types include, espionage, sabotage, search and destroy, town liberation, prisoner rescue, retrieval of enemy officers and documents, partisan assistance and assassination. The variety of locales include Norway, Libya, a Norwegian fjord, Burma, Austria, France and Czechoslovakia.
The expansion pack Sabre Squadron adds missions in France, Libya and Sicily. Some of the missions are modeled on real SAS exploits. However most of the game takes liberty with the historical time and place of SAS operations. The missions are based on sandbox style game-play where players are free to roam a map and pursue objectives usually at their leisure and choice of sequence. A real time strategy mechanic also allows players to control events for staged sequential tactical maneuvers or through real time overhead command.