Space Pilot 2 is the sequel to the C64 game Space-Pilot. While the first game was largely a clone of Konami's Time Pilot, this title moves away from some of the original features. The basic gameplay is still identical. Players command an aircraft through different environments, shooting down planes to collect points. The ship's nose can be rotated left or right, so the craft can move into any direction and take sharp turns left or right. Speed is not controlled by the user and it is always maintained at the same level automatically. The background is wrapped endlessly both horizontally and vertically, and that way it is impossible to encounter a border.
The game no longer takes place in distinct time periods and removes the realistic environments. All stages are now set in space with surreal backdrops and in an unknown point in time. To warp to a new period, the player needs to shoot down different kinds of space ships appearing from all directions. Destroying them is rewarded with points and it depletes a time meter in the bottom right corner of the screen. When the meter is completely empty, all opponents disappear and a new stage is entered. At the introduction screen to each stage an overview of possible enemies and the points that go along with them is shown. Occasionally a formation of three identical ships appears and these can be destroyed for bonus points. Enemies try to ram the player's ship and also shoot regular bullets as well as heat-seeking missiles.
The player starts with three lives. An extra life is granted at 10,000 points and then at every 30,000 points. There are four main backgrounds and these are repeated over the stages, but with a different colour. Enemies become faster and come in greater numbers in later levels. The game supports up to eight players, taking turns to get the best score.