Magic Carpet 2: The Netherworlds enhances the original game's mechanics with new features and improved gameplay. Players can build castles, gather mana, and engage in battles against rival sorcerers while navigating through night-time and underground levels. The storyline is developed through missions that require players to reach checkpoints and destroy designated targets, adding depth to the gameplay experience.

This sequel addresses design issues from its predecessor by introducing varied environments and secret entrances to hidden levels, where players can unlock additional spells and gain experience. The game retains its core elements while ensuring a more structured and engaging progression through its missions, making it a significant upgrade in the action gaming category.