Need for Speed: Underground 2 is a street racing game and the first entry in the series to feature an open world environment. Set in the fictional city of Bayview, players drive freely between events while building their reputation through circuit, sprint, drift, drag, and Street X races, as well as outrun challenges and Underground Racing League tournaments. The game expands on its predecessor with broader vehicle customization options, a sponsorship system, and new race types. SUVs appear alongside the returning roster of tuner cars. Shortly after becoming the top racer in Olympic City, the player is ambushed and their car is destroyed by an unknown assailant. Six months later, they relocate to the city of Bayview to start over, guided by a contact named Rachel Teller who introduces them to the local racing scene. As the player earns sponsorships and builds a reputation, they draw the attention of Caleb Reece, the leader of a crew called The Wraiths who is attempting to control Bayview's racing scene by manipulating sponsorship deals. Rachel reveals that Caleb is the same person responsible for the attack in Olympic City. After turning one of Caleb's crew members to their side and surviving multiple attempts to sabotage their career through rigged tournaments, the player challenges Caleb directly, defeats him, and claims the title of Bayview's best underground racer.