In his second adventure, James Pond must retrieve the toys Dr. Maybe has stolen. Pond has been armed with an Inspector Gadget-style stretch device, which he can use to view higher areas or claw onto ceilings so as to slide across them.

The gameplay takes place across worlds themed around particular types of toys, such as sporting goods, candy, and aircraft. The levels scroll sideways, although a small amount of vertical movement is included. On each level Pond must collect 2 penguins and reach the exit, although there are usually multiple exits and lots of secret areas to explore. After completing each pair of two worlds (each of which has three sub-levels), a boss must be faced.