In Romancing SaGa 2, the player plays as the Emperor or Empress of Avalon, a castle located in the northwest corner of the game's world map. The Treasurer, in the throne room, tells the player the fund reserve in his or her castle treasury. Development of new equipment and spells, and establishment of services in Avalon will consume funds. The Treasurer also fills the Emperor with walking about funds if the player needs it. Also in the throne room is the Accountant. He tells the player how much money he or she collects per battle. When the player controls more land on the map, the amount increases. In the southeast corner of the throne room is the Chancellor. He tells the player what problems need to be solved in the world and where to solve them. Solving the problems he points out aids the player to advance to the next generation. The Fighters are the default characters that join the player early in the game. They are not the best characters, but as the player advances through the game, he or she will get other characters who specialize in areas that the Fighters are weak in. The Formation Soldiers demonstrate any battle formations the player happens to know and will collaborate with the player to make new formations. If the heir the player chooses knows a formation, it is recommended that the player consult the Formation Soldiers.
Throughout the game the player will be able to expand the capital. They will not appear until the player cleared a generation though after accepting the offers to start the public works.
The Emperor or Empress of Avalon begins the game as King Leon and later plays as his various heirs down through the game years. Leon hands his kingdom over to his son, Gerard. At the end of Gerard's reign, the player is able to choose his or her own successor and pass on Gerard's abilities to them. At the end of each generation, he or she will be given a choice of four heirs. Their identity is based on a combination of chance and anyone whom the player has assisted or allied within in a past generation.