Stage 2 takes place inside of a building with a variety of traps and obstacles. Each section tends to have its own theme. (The FDS version is pretty faithful to the arcade, with the exception of having fewer instances of particular traps like spinning blades or metal presses.)
- On the level where you begin, walk to the right, taking care to shoot any of the hopping hunchbacks that leap your way. Climb up the ladder.
- On the next level, you must walk to the left across a conveyor belt that rolls to the right. As you cross, bats will drop down from the ceiling, fly in a small loop, and return to the top. Shoot them as they reach the bottom of their descent. Climb up the ladder.
- Six spike traps roll back and forth. Time your jumps carefully so that you clear each one, one at a time, without risking collision with the trap beyond it. When you reach the end of the ledge, fall down to the floor below to land on a treasure chest.
- From the floor, climb up the ladder on the right, walk to the far right to collect another treasure chest, and then climb up the next ladder. An enemy will materialize and fly over your head. Shoot it when it's on your right, then climb up the next ladder.
- Two spinning blades move back and forth on a rope. Duck down and wait for the blades to completely pass overhead before advancing to the left. As you pass below the second blade, a bird will approach from the left. You won't be able to shoot it while ducking. Continue to run to the left while shooting the rest of the birds that appear.
- You must safely jump to the platforms and beyond without getting squashed by the metal presses. Begin your leap to the next platform while the metal press begins it descent. You should land on the platform just as the press begins to rise. Immediately jump off to the next platform to collect the treasure. Then carefully time your jumps past the next two presses and climb the ladder.
- Similar to the presses, you have to avoid getting caught in the blast of steam rising up from the next platform. Wait for a bird to appear and remove it before jumping over the gap. Time your jump so that you leap as a blast of steam is beginning to rise out of the block. You should land when the steam disappears. Then immediately jump over to the next platform before the next blast of steam rises. After that, you have another press and another steam to avoid before you reach the ladder.
- The next floor features a conveyor belt that leads to a dead-end. If you happen to walk all the way to the dead-end, you'll receive a bonus in the form of extra time. Then walk back and climb up the ladder above your arrival.
- You must jump from one small conveyor belt to the next. The movement of the belt isn't the problem, it's the appearance of birds that show up while you're in mid-air. It's best to leap and shoot fire at the same time to rid the danger of the birds as you cross each gap.
- When you reach the safety of a platform, you will see a treasure chest below you, and a zip line pulley above you. Jump up and grab the zip line, and you will race to the right. As soon as you see the treasure chest on the high platform just ahead of the spiked wall, push down to release the pulley and land of the platform without hitting the spikes. Then fall down to the left and watch out for an enemy which appears. If you really need the money, you can walk all the way back to the left to get the other treasure chest. Otherwise, just fall down to the right.
- On the next level, you must cross to the left over conveyor belts that move to the right, all while ducking under several spinning blades. As you duck under each blade, it's important that you wait until the blades have completely passed over your head before standing up. When you are close to the intersection of two blades, you may have to stay low and let the left blade return before standing up, getting a little farther, and ducking under it again. Fall down to the next level and collect a treasure chest.
- The next level is similar to the previous level, only instead of conveyor belts, you have to deal with bats in addition to the spinning blades. Fortunately, you can clear the bats out of your way while you are squatting. After clearing three bats and two blades, you will reach a set of small platforms. Watch out for a bird that flies at you from the right.
- There are some items on the platforms below, but you won't know where they are until you drop down. Proceed all the way to the right most platform, and fall down to the left. Below you, you will see a bird, and the first faerie statue. Remove the bird from above and drop down to collect the statue. You will now have the added protection of a faerie.
- From there, you have to make a choice. If you are still wearing the cloak from Stage 1, drop down to the gray ledge below, watching out for the birds that fly around, and walk along the ledge to collect four instances of 1000 bonus points. If you are need of a new cloak, jump instead to the platform on the far left, and continue falling to the left until the cloak comes into view. Then fall to your right to collect it. (The FDS version contains provides you with more health if you walk to the far right of the gray ledge, and a clock in the place of the cloak.) Continue falling down to the ground to reach the boss.
Before you can open the door to the exit, you'll have to defeat the dragon boss. It will look just like the boss of the previous stage, only this boss can breath fire. The dragon drops down to the ground every so often. When he stays there for a moment, he will shoot fire at you. Every other time he drops to the ground, it will be to fly towards you very quickly, which you can stop by shooting him. Be sure to jump over the blast of fire whenever he drops to the ground in order to shoot you. Beyond that, pelt him with flame as fast as you can to remove him quickly. You will have access to the silver key which opens the door to a cell behind the dragon. It will appear that you have rescued a maiden, but when you step through the door, the maiden will reveal herself to be just another hopping hunchback. Shoot the hunchback and collect the gold key, which is the real key to the exit on the right. In the shop, you should now have the necessary $3000 to buy the Sun Fire magic. If you have any left over money, buy a Needle and Thread, and a Clock.