[3] Jeethu wrote the script for Drishyam 2 when the production work for his other film, Ram, got interrupted due to the COVID-19 pandemic.

After a formal announcement made on Mohanlal's 60th birthday, 21 May 2020,[3] the principal photography began on 21 September and concluded on 6 November 2020, while adhering to safety precautions set for preventing the spread of COVID-19.

The film was released worldwide on 19 February 2021 to widespread critical acclaim, praising the narration style and performances (especially of Mohanlal).

Rani's only source of solace is her friendly neighbor Saritha, a government clerk, who is often abused by her alcoholic husband Sabu, a real estate broker.

With Georgekutty remaining aloof to her concerns, Rani spends more time with Saritha, and inadvertently blurts out the truth about her family's involvement in Varun's death.

Unbeknownst to her, Saritha and Sabu are married undercover cops, assigned by Inspector-general of police Thomas Bastin, a close friend and colleague of Geetha.

Georgekutty pleads not guilty, with his legal defence claiming that he had been framed by the police, who had misused Drishyam's plot to incriminate him.

The hero would keep the skeletal remains which he got from the cemetery with him for three years, before befriending the security guard of the district medical college morgue under the guise of offering him a role in his film.

The judge calls Thomas to his chamber and tells him that both Georgekutty's and Prabhakar's families deserve justice but the legal system is unable to provide it to them.

Outside the courthouse, Vinayachandran discloses to Geetha and Prabhakar that Georgekutty's alternate climax had a tail end as well: the hero would transfer the villain's ashes to his bereaved parents.

As Prabhakar immerses Varun's ashes into the river, Thomas convinces Geetha to let go of her enmity towards Georgekutty, stating that they'll never succeed in punishing him as he would go to any length to protect his family.

[20] An entire street was erected at the place, including Rajakkadu Police Station, Georgekutty's cable TV shop, and surrounding stores and structures, which was one of the main locations.

[24][25] Director Jeethu Joseph stated the plans for a theatrical release on 22 January 2021 before Mohanlal's big-budget film Marakkar: Lion of the Arabian Sea,[26] citing that it is served to be a "litmus test in getting the audience back when theatres reopen".

[16] However, as the Kerala Film Chamber decided against reopening theatres since they demanded relief package from the government as theatre business took a severe hit following the coronavirus-induced lockdown and full exemption from entertainment tax,[27][28] plans for the theatrical release had interrupted and the team opted for the digital streaming platform Amazon Prime Video to distribute the film.

He had paid advance from theatre owners to screen Marakkar: Lion of the Arabian Sea, since it is a huge film and made for theatrical experience.

Aishwarya Vasudevan of the Daily News and Analysis gave a 4 out of 5 star rating and wrote, "Drishyam 2 is a gripping tale of an investigation and a family which is threatened by it, is a must-watch sequel we didn't know we deserved and the film will make you think for hours after you completed watching it".

Powered by top class writing and plenty of unexpected twists, the sequel packs a solid punch and makes for a riveting watch right till the end.

[48] Rating 4 out of 5 stars, Sowmya Rajendran of The News Minute said that this "thriller is a superb sequel ... looking at the strength of the writing, it looks like in Jeethu's mind, Drishyam was always supposed to be two films".

[51] Janaki K. of India Today called it "a fitting sequel to Drishyam" and stated "Jeethu Joseph’s staging and strengths to work on a solid script are the film’s assets ... Mohanlal is just excellent", rating 3.5 out of 5 stars.

[52] Film critic Baradwaj Rangan called it a "solid sequel, which swaps tension with existentialism", with a "superb structure.

[53] Tina Sara Anien of Deccan Herald rated 4 out of 5 stars, calling it "a thrilling, befitting sequel" and that "Drishyam 2 quashes the notion that sequels lack the magic of the originals ... not many thrillers have succeeded to impress an audience by intensifying the original's plot and that's the clinching proof of this film's special quality".

[57] Gautaman Bhaskaran of News18 wrote that "Mohanlal returns with more vigour and charisma ... Georgekutty is not a man to be cowed down, and the rest of the movie is an exciting game of how he foxes the cops and saves his family.

[58] Critic from Asianet News rated 4 out of 5 and called it a "perfect sequel" and that its "a must-watch for the sheer brilliance of Georgekutty aka Mohanlal and the marvellous script of Jeethu Joseph".

[59] Saibal Chatterjee of NDTV gave a 2.5 out of 5 stars and wrote, "Mohanlal is flawless yet again ... in terms of structure and rhythm, writer-director Jeethu Joseph follows pretty much the arc of the original film", but felt "the writing could have done with more punch".

[62] After the release of Drishyam 2, producer Antony Perumbavoor commented that it is possible for a third film in the series, although Jeethu had neither confirmed nor denied it.