Due to criticisms of the first Larry game, Sierra wanted to tone down Larry's sexual escapades for the sequel. Thus, Larry 2 doesn't contain nearly as much sex as Larry 1 (in fact, if the player does try to pick up random women, Larry will invariably be killed), which explains why the game relies only on copy protection and not an age-verification system. Ironically, Larry 2 was criticised for not being sexy enough.
Larry begins his exploration again, and by chance he wins the lottery and a Blind Date contest in the same day. During his preparations for the cruise, a microfiche falls in his hands by mistake. He is then pursued by KGB agents as well as minions of the evil scientist Dr. Nonookee (a pun on "no nookie"), who both want to recover the film.
His travels lead him to the tropical island Nontoonyt ("None tonight"), where he meets Kalalau, the daughter of the natives' leader Kennywauwau (who bears a curious resemblance to Ken Williams). Larry enters Nonookee's lair in the heart of a volcano, where he accidentally defeats the evil doctor and wins the heart of Kalalau. (One of the final scenes included a piano-playing "Polyester Patty", who featured prominently in the next game as "Passionate Patti". Note that Patty's hair is blonde, while Patti's hair is black or brown.)
This was the first Larry game to include some customization, like the favourite 'trite phrase'. The default is 'Have a nice day' but the player can change it to anything he likes.
Due to a very serious bug, at the very end, the parser required the word THE before the nouns or it would understand them as verbs and return a mistake. The only acceptable syntax was PUT THE XXXX IN THE XXXX, which troubled many players.