The hero ninja Ryu Hayabusa put a stop to the evil doings of Tengu, but it was too late to stop him from triggering a massive worldwide collapse. A dense cloud covered the entire planet in a shroud of darkness and fear. DOATEC has gone astray, turning into the hunting grounds for power-hungry scam artists.
The story, set in the year 1986, focuses on Miku and Mafuyu Hinasaki, siblings with the ability to see supernatural events. When Mafuyu disappears in the haunted Himuro Mansion searching for his tutor Junsei Takamine and his assistants, Miku goes to Himuro Mansion.
The protagonists of Fatal Frame II are Mio and Mayu Amakura, twin sisters who are visiting their favorite childhood playspot in Minakami before it is lost due to construction of a new dam. The main antagonist is the vengeful spirit of Sae Kurosawa, the sole Twin Shrine Maiden sacrificed for the failed ritual.