Before the game starts, Po (who is now the Dragon Warrior and a well-trained Kung Fu master) has a short Kung Fu tutorial with the players, teaching the player some basic moves, like punching and kicking. Then the story of the game starts.
The story of the game happens after the events of the movie of the same name. After defeating Lord Shen, Po, the rest of the Furious Five, and the villagers celebrate. However, remnants of Shen's army arrive, create chaos, and capture various villagers. It is revealed that two komodo dragon mercenaries planned to use Shen's thugs to distract Po and the Five, and with them out of the way, they plan to take over Gongmen City. Shifu holds a meeting with Master Storming Ox and Master Croc.
Master Storming Ox says that they can't let the komodo dragons and the thugs take over the city, so Shifu, Storming Ox and Croc decide to split up and go around the city to stop the thugs. Po, with nothing to do, decides to tag along with Master Storming Ox, too. Po and Storming Ox have to attack and defeat all the komodo dragons' minions and Shen's thugs at the same time. Throughout the game, there are other short Kung Fu tutorials with Po. However, these tutorials are different from the first, because in the tutorials, there is usually a minion of Shen or the komodo dragons for Po to fight to show an example for the player.
Unlike the first game, the Kung Fu Panda 2 video game received generally mixed reviews from critics. Metacritic calculated a score of 50 out of 100 for the Xbox 360 version based on 18 reviews.  It did a little bit better in the reception department for the DS version, scoring a rating of 59.[source?] The game fared worse with a rating of 31/100 for the PS3 version from 7 critics.[source?] On GameSpot, the game received an even negative rating score, receiving only 3.5 out of 10 points.[source?] The game received a slightly more positive score on IGN, receiving 6.5 out 10 points.[source?] However, IGN gave the PlayStation 3 version of the game a negative score, giving it only 3.5 points. 
The gameplay of the video game is extremely different from the gameplay of the game of the first film. For example, in the Kung Fu Panda game, the player can move Po around and can explore various places. However, in the Kung Fu Panda 2 game, the player cannot move around; the player can only fight in one place, and can only punch or kick or block or do other Kung Fu moves.
In the Kinect version, the player uses his or her body to move Po's body parts to defeat enemies, and the player can call other characters to come help them. Even in the rickshaw chase levels, the player can only move the rickshaw side to side.