Test Drive Unlimited 2 will feature dynamic weather effects, day and night cycles, and vehicle damage. They have also mentioned that the game will take place on Ibiza. After enough gameplay, players will be able to return to an expanded and updated Hawaii from the previous game. It was also announced on 15 March 2010 that Test Drive Unlimited 2 will feature SUVs and a co-op game mode in which one player drives while the other player reads the map.

There will be a storyline in Test Drive Unlimited 2 to follow for the player. To progress through the game, the player has to earn experience points to level up through the 60 levels. 

These points can be earned via 4 categories:

    * Competition (racing, completing challenges)
    * Social (making friends in the game, race against other people, joining clubs)
    * Discovery (discover all roads, take photographs of specific locations, find all car wrecks)
    * Collection (buy cars, houses, furniture, clothing/basic need's)

There are an additional 10 Levels available to those who acquire the TDU2 Casino Online DLC/Pre-order Bonus, these levels are achieved within the casino itself.