In addition to ammo, players will usually come across certain items and power-ups to aid the player. These ammo types can result in different effects from flamethrowing to firing ice shards (that freezes almost any enemy or object on contact). During the course of the game, however, the player can encounter additional ammunition that can provide the player with greater fire-power and range but with limiting ammo. Each Character is equipped with a gun that can fire an inexhaustible supply of projectiles in a straight manner.

For an example, Jazz can launch himself vertically higher than others, Spaz can double jump, and Lori can dash across the screen whilst eliminating almost any enemy or obstacle in her path. Each character has certain traits that are exclusive to each other. The Player is given a selection of characters to choose from, namely, Jazz, Spaz, and eventually (in the subsequent expansions) Lori. The player's goal is to reach the level's exit, usually indicated by an exit sign, whilst overcoming obstacles and hazards through the use of running and jumping as well as removing enemies and obstructions through the use of shooting and stomping. The player must venture through a series of levels populated with enemies and environmental hazards that may hinder the player's progress. Just like its predecessor Jazz Jackrabbit, Jazz Jackrabbit 2 is a 2D side-scroller that incorporates elements of shooting and platforming.

Jazz's brother, Spaz and (in the special edition of Jazz Jackrabbit 2, The Secret Files) Jazz's sister Lori, were introduced as new playable characters. Jazz chases his nemesis Devan Shell through time, in order to retrieve the ring with which he planned to wed Eva.

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