Unravel Two is a cooperative puzzle-platformer, serving as a direct sequel to the original Unravel. Players create their own Yarny, then build relationships with other Yarnys in local co-op or as a single player. The core gameplay loop involves navigating environmental challenges and solving intricate trials, either cooperatively with a partner or by independently controlling two Yarnys.

The game's central mechanic relies on the coordinated movement of two Yarnys, which players utilize to jump, slide, swing, and run through diverse landscapes. These environments, inspired by real Scandinavian locations, flourish and evolve as players progress, opening fresh challenges and new spaces. The world itself manifests unique emotions into friendly characters and intimidating monsters, directly influencing the player's journey.