ike the original Torchlight, Torchlight II features randomly generated dungeons for the player to explore, and numerous types of monsters to fight for experience and loot. Torchlight II maintains the same basic gameplay as its predecessor, but features overland areas with multiple hub towns, and a longer campaign. Other new features include time of day cycles, weather effects, and a redesigned user interface. Players are able to customize character appearance with choice of sex, face, hair style and hair color.^[5] Additionally, several elements from the first game return, such as pets (but now with expanded options and basic customization available) and fishing. A retirement system was originally planned, similar or identical to the one in the first game, but was replaced with the current newgame+ mode.

The game features four playable character classes. Each class has 3 skill trees to choose from which enable customization within each class. The three classes from the original Torchlight do not return as playable characters, and are instead presented in the game world as NPCs.