Part 2 starts off with the journey towards the Isle of Prisoners, where Master Nathan, Chella and other members of The Family have been taken captive by the Dhorn. The princess, along with Vico, Pia* and Anden sail first towards Westwood, a town near the Black Mountains. During the journey, the Princess falls ill, and when she wakes up, the ship is at port in Westwood, but her companions are nowhere to be seen. Heading into Westwood, she discovers that they have been arrested and are held in Westwood Castle. She rescues them, but a raid on the city results in the destruction of Westwood. Before leaving Westwood, the Princess meets two barbarian siblings, Bran and Norah, who are on a quest for revenge. She also meets Gemli, a dwarven cleric. Either the barbarians or the cleric join the group out of Westwood.
Shortly, they reach an abandoned mine at the foot of the Black Mountains. Entering the maze of tunnels, they find all sorts of creatures. Finally reaching a lower level below the mine, they encounter formians and an odd kolbold named Screek. Resurrecting a dead dwarf, he tells the Princess that he knows where the City of Dwarves is, and that they can lead them to tunnels further under the mountains. Reaching the dwarven city, the leader refuses to allow the group into the tunnels unless they slay the dragon Sziths. Upon resting in a nearby inn, the Princess has an encounter with Vico, which either leads to him staying or leaving to save Nathan by himself. The next day, Bran and Norah may also decide to leave on their quest.
Going back through the mine and up to the surface, the group travels for a while in the countryside and eventually into the forest. There, Sziths kidnaps the Princess, separating her from her companions. Sziths is accompanied by his lackey, Screek. When they both leave, she sneaks down into the dragon's lair and discovers Sziths and a group of Dhorn soldiers having a conversation. They argue and start fighting, with the Dhorn ending up dead. The Princess either kills Sziths, or finds a tunnel leading up to where she was kidnapped, finding her companions, and then returning to kill Sziths. They bring Szith's head back to the dwarf leader under the Black Mountains.
The dwarves allow them passage further down into the mountains. The group meets a strange gnome named Budo who sets a traps. Killing him and his monster, there is nowhere else to go, but down a waterfall. The Princess and her companions jump, washing up the shore unconscious. Pia and Gemli go missing. The remaining group is now in the Underdark. They are ambushed by various drow squads and kobold bands. At an abandoned outpost teeming with kobolds, Pia is found jailed in the basement. Rescuing her, the group continues on their travels, where they eventually find Gemli's remains. More drow attack and they come upon a giant lair where suddenly a large skeletal dragon and countless skeletal warriors attack. Surviving, they find eerie tower containing a spherical orb. The Princess touches it and its owner, a mindflayer, Rual'Thor, knocks everyone unconscious.
The Princess wakes up in a cell where she is forced to kill a Grey Render. She is then put on the slave market in the Drow city of Maeralssin. She is bought by a drow warrior named Rizzen Do'vrinn, a member of a noble house. She is jailed and forced to become a gladiator for House Do'Vrinn. In a particular battle, she is put to fight again House Noqu'tar's champion, who happens to be Vico. The Princess beats him, although he still shows signs of life. She either gives the final blow or leaves him be, the latter allowing him to survive and eventually escape slavedom.
She is returned to her cell, but soon House Noqu'tar attacks House Do'Vrinn, allowing her to escape. Heading upstairs into the ensuing battle, she happens upon the room where Matron Do'Vrinn and Rizzen are hypnotized by a mirror set up by House Noqu'tar. Breaking the mirror, they reawaken and kill off the Noqu'tar soldiers. The Matron leaves to attend to join the ongoing battle in her house, leaving Rizzen behind. Rizzen explains that he is soon to die because he is evidence to the Matron's capture, which would bring shame to the House. The Princess persuades him to escape with her, as he is the only one who knows the area.
They escape out of Maeralssin, on the hunt by Do'Vrinn drow assassins. Rizzen still treats the Princess as a slave, and, since she is armourless, is unable to argue otherwise. The Princess explains to Rizzen that she needs her equipment. The search leads them back to Rual'Thor, who is hostile. Killing him, the Princess finds her equipment and also clues as to where Pia and Bran are. If Bran was in the party, then the Princess may sneak back into the Maeralssin and rescue him. Going back to a Rugnar the dwarf's shop, which she and her companions had encountered earlier, she finds Pia, sold as a pleasure slave to the dwarf. Getting Pia away from the place, the group goes deeper and deeper into the Underdark, encountering more raids and assassination groups. If Vico survived the gladiator fight and is in a relationship with the Princess, then he appears at some point and rejoins her. The last drow battle is in the Mushroom Grove, where Rizzen's sister, Talice heads the assault.
Finally, they reach the surface again, on the other side of the Black Mountains, in a forest in the Lake of Sorrows. The Princess is unaware of it, but she is in hot pursuit by Arto Benthur, a Dhorn general. The group makes their way to the Dhorn city of Moonville (leaving Rizzen in the woods), with the intent of finding a way onto the Isle of Prisoners. A drow merchant offers information into Moonville if the Princess kills Rizzen, which she may or may not. She learns that a certain general at the Dhorn barracks holds the key to the castle. Posing as a job hunter for maid work, she finds her way into the barracks and procures the key. Getting into the barracks by herself, the Princess doesn't find a way onto the Isle of Prisoners, but does meet a strange prisoner called Jachan, who gives her a coin.
Leaving Moonvile, the Princess and her companions join back up with Rizzen (if not already dead) and head towards a forest, which contains an abandoned temple. Entering the temple, they happen upon a portal. Upon touching the portal, the Princess is again separated from her companions and ends up in a cultist haven. Showing them the coin, the Princess is lead naked into cult site where most of their members are participating in orgies. They lead the Princess to a Highpriest, who begins a ceremony that concludes with the summoning of an evil demon. The demon kills all the cultists and transports the Princess onto the Isle of Prisoners.
The prison is guarded by Dhorn soldiers and so the Princess find an alternate way via an old barracks building. However, the place is teeming with undead. Going down a hole, she enters the large complex of the Isle of Prisoners. She sneaks or kills countless of undead until she meets Maren, an undead princess. Maren explains that the island used to be a palace where her father the king ruled. One of his advisors, a bishop, was an evil man, and created a portal linking to the demon world. All the castle's residents were killed, yet they remained undead, haunting the castle forever. The princess goes further into the complex, encountering more undead before she find an exit back into the cult site, and back into the abandoned temple. She joins up with her companions and returns to the Isle of Prisoners. They managed to get into the prison side of the Isle, where it is scantily-guarded by Dhorn soldiers. They learn that the Dhorn were making use of the curse upon the Isle. When a prisoner was brought to the Isle, they were killed, but the demonic curse upon the Isle left them undead. If the Dhorn wanted to re-interrogate a prisoner, they would simply reanimate them. Soon, the group find scores of undead prisoners, but no sign of Nathan and the others. They reach the Capital Crimes Disposal Pit, and they climb down and are attacked by balrogs. Going down a further corridor, they find The Bishop in demon form. Killing him, the Princess and her companions find an undead Jacia. Killing then resurrecting her, she returns back to normal and joins the group. Walking across a bridge, it collapses and the group finds themselves in a desert-like wasteland, full of tombstones.
After days of walking in a neverending desert, they find a set of stairs into a volcano. A strange old man resides there, who brings back Chella. The old man has a task for the Princess, to go to the town of Delberg to steal a statue in its castle. He leaves her no choice but to follow a hellhound until reaching a firey complex. She finds a succubus who reveals herself to be Christano, the male paladin in Part I. Exploring the area further, the two meet the demon Hyath, who gives the Princess a deep kiss and then transports her and Christano into Delberg forest.
Christano is now alive again, albeit a girl. She goes off along her own way, while the princess searches for Castle Delberg. It is surrounded by orcs which pinch off the food supply of the castle. The Princess has two ways of getting into the castle. She either finds clues in the orc camp that leads her to disguise herself as a woman that the orcs can use as a pawn for negotiations with Lord Delberg. Or, if she is discovered by the orcs, she will be enslaved as a sex slave to Bagor, the head orc, and the Princess needs to persuade Bagor to let her into the castle.
Being sent into Delberg Castle, the residents immediately recognize the Princess and she is invited to stay in the castle. The Princess then secretly investigates the whereabouts of the statue. Finding the statue, the Princess witnesses a discussion among the people of the castle. Some want to use the Princess as a playing card and offer her to the Dhorn in exchange for their help in ridding of the orc threat. Others, which may include Lord Delberg, want to protect her, despite the dire circumstances of Delberg. They start fighting, including the Princess. If Lord Delberg is on the side of the Princess, he will tell her to go for help and return to save Delberg. She leaves via a secret tunnel, back through the orc camp and back to Hyath. There, Hyath will kill her.
The Princess wakes up in Greenfork Castle, extremely ill. When she regains consciousness, she examines herself and finds that she is still a maiden. She wanders out of her room, but then collapses again. Upon waking up again, she is visited by who appears to be her father. She is told that she has been under some illness for months, and that none of the "events" that have happened to her, like the fall of Betancuria, had ever happened. After a few more days, she regains her health and is invited to dinner with her father and guests. Among the guests is Arto Benthur. Then, her father announces her future marriage to Arto. The Princess can assume that all that has happened to her is a dream, and then proceed with the marriage, which would be the end of the story. However, she may refuse to marry Arto which will then lead to her being locked up in her room until she changes her mind. Finding her armoire ajar, she notices a note which instructs her to climb down her window. When she does, she is met by Anden, who is now a Dhorn soldier. He tells her that he was persuaded by Arto that it was in her best interest that she be found and so had been on a search party to find her. However, later discovering their true nature, he also ran into Nathan, who is now alive. Anden brings her to Nathan who tells her that she is infected with a demon pox, given to her by Hyath's kiss. The pox was to have killed the people of Delberg, but somehow Hyath had neutralized the effect, perhaps having another agenda than that of the Old Man, who was also working with the Dhorn. Nathan gives her two options. She can go back to the castle and marry Arto, but when she puts on her wedding ring, the demon pox will be reactivated which will kill her, Arto and also everyone in the area nearby. The death of Arto would be serious blow to the Dhorn empire. Alternatively, she could just run away and go into hiding forever, but with her friends and, if there is one, her lover. The Princess may also tell Nathan about her promise to Delberg, if she made one.
If the Princess decides not to marry Arto or run away, she goes back to Delberg Castle with all of her companions, some Family members and also two other people that she met. They launch a huge assault on the orcs and manage to enter the Castle. The castle is empty, but going into the secret tunnel that she used to escape Delberg previously, she finds Lord Delberg, fighting off the last of the orcs. Killing them off, Lord Delberg relinquishes his throne and makes the Princess the Lady of Delberg. The Princess assumes her rule, now in political power, and in a situation that might eventually lead her to overthrowing the Dhorn Empire someday.