The main trade resource of Khorinis is the magic ore delivered from its recently fallen prison colony to the King, who is fighting the orcs on the mainland.

The city is low on basic necessities and relies on travelling merchants as the ships from the mainland have stopped coming because of the war.

[2] The Nameless Hero is instructed by Xardas on the new danger, an army of evil that has gathered in the mine valley, led by dragons.

Xardas sends the Hero to Lord Hagen, leader of the paladins, to retrieve the Eye of Innos, an artifact which makes it possible to speak with the dragons and learn more about their motivation.

When finally meeting the head of the paladins, the Nameless Hero is first sent into the mine valley, which is now overrun by Orcs, to bring back evidence of the dragons.

He also knows about the dragons, since the castle has already been attacked by them, but is only willing to write a notice on it for Lord Hagen, after the Nameless Hero has gathered information on the status in the mines.

Presented with the note Lord Hagen is willing to give the Eye of Innos to the Hero and sends him to the monastery of the fire mages to retrieve it.

The mages manage to restore the power of the Eye of Innos and so the Hero can head back to the valley to destroy the four dragons that live there.

The Hero is given a note from Xardas by Lester, telling him he was to find more information in the fire mages' monastery, in the book 'The Halls of Irdorath'.

[11] In the German market, it debuted at #1 on GfK's weekly computer game sales charts in December,[12] topping popular rivals like Harry Potter and the Chamber of Secrets.

[19][20][21] Despite exiting the top 10 in the sixth week of 2003,[22] Gothic II received a "Gold" award from the Verband der Unterhaltungssoftware Deutschland (VUD) by the end of January,[10] for sales of at least 100,000 units across Germany, Austria and Switzerland.

[28] In early 2005, Koch Media launched its "Hammerprice" line of budget games, which repackaged older titles at a €10 price point.

Gothic II was among the first games released on the label, alongside titles such as SpellForce: The Order of Dawn and Singles: Flirt Up Your Life.

The editors called it "a return to the roots of classic fantasy roleplaying on the PC" and noted its "beautifully detailed nonlinear 3D world".

[45] In 2021 the game received a stand-alone mod, The Chronicles of Myrtana [pl], developed by the Polish team and released independently on Steam with permission from the Gothic II creators.