The story of Chameleon Twist 2 takes place after the events in Chameleon Twist. Davy and his friends (Jack, Fred, and Linda) are playing in the woods, still carrying the backpack from his last adventure, when suddenly the rabbit (closely resembling the one from a Lewis Carroll book) from before falls down and knocks one of the chameleons into the sky. The chameleon transforms into an enhanced-looking chameleon and goes on a search for six carrots in six different worlds.
Whenever the player saw the rabbit, he or she could talk to it. The rabbit would ask them if they wanted to go to a practice course, and they could either accept or decline. If they declined, the rabbit would fly away and the player would not be able to visit that bonus course anytime again in the game.
The worlds are much longer than those of the first. However, there is no longer a multiplayer mode.
Chameleon Twist 2 has an imaginative dreamworld environments. The textures of the worlds are less detailed, but more colorful.
The music in the game mirrored the first in that it was cheerful, upbeat and fast tempo. Din is the music contributor for this game.
The Japanese version featured the same design for the playable characters from the prequel, while in the English version, the design has been edited to be more chameleon-like. In Japan, Davy is blue while Jack is green. In the US, Davy is green while Jack is blue; in contrast to the original.