Shadow of the Beast II finds the hero Aarbron in half-beast form, wandering the lands of Karamoon in search of his kidnapped sister. She had been taken away from her mother's cottage by the dragon-form of the Beast Mage, Zelek, servant to Maletoth. Along the way, Aarbron befriends the wise dragon Barloom and must defeat the evil dragon Ishran. Tree Pygmies in the forest and the goblins in the Crystal Caverns serve as foes.