Sonic Chronicles 2: Nightmare in Illusionary World is the sequel to Sonic Chronicles: The Dark Brotherhood, being exclusive to the 3DS system. Like its prequel, it is an RPG game.
The gameplay is very similar to its prequel, except this time, only up to six characters can join the party, while only three in a party can fight. However, players can switch players in the Inn of Sweet Dreams, and the items are also very similar to the prequel's. Each character now has a special ability for certain requirements, such as Knuckles can break gigantic bloders that are blocking the path.
Sonic and Tails are going to Illusionary World for a vacation by Tails' plane, and pay for an inn called Inn of Sweet Dreams to stay there. While having their vacation there, Sonic and Tails were kidnapped by a group of native aliens called the Lusios, and imprisoned them where the malevolent ruler, King Tantinbus, was. King Tantinbus tells Sonic that he brought him to his castle to be killed with the Chaos Emeralds. Later that night, while King Tantinbus was gone, his rebellious and kind-hearted daughter, Princess Suena, offers to free Sonic and Tails out of prison which they agree. Princess Suena explains to Sonic and Tails that King Tantinbus has brainwashed all the inhabitants in Illusionary World and Sonic's friends so that he could take over the whole world because the Chaos Emeralds have been scattered around Illusionary World, which King Tantinbus was looking for to rule the world. Sonic and Tails then decide to help Suena to stop her father for the sake of the Illusionary World.
|Sonic the Hedgehog||The world's beloved hedgehog, Sonic will always protect the world from any threats with his super speed. While in a vacation to Illusionary World, he and Tails get captured by King Tantinbus' servants and later with the help of Princess Suena, he has to stop King Tantinbus and Dr. Eggman from conquering the world.||Speed|
|Miles "Tails" Prower||The friendly sidekick of Sonic and a genius mechanic. He is an expert in building planes. He gets kidnapped by the Lusios along with Sonic during their vacation in Illusionary World. He now has to stop King Tantinbus with the help of Princess Suena.||Fixing|
|Knuckles the Echidna||The bad-tempered guardian of the Master Emerald and a good friend to Sonic and Tails. His powers include breaking some hard stones with his hard fists.||Superpower|
|Amy Rose||Sonic's crazy self-proclaimed girlfriend, who gets kidnapped by Dr. Eggman and King Tantinbus to kill her if Sonic doesn't give Eggman the Chaos Emeralds.||Hammer Time|
|Shadow the Hedgehog||Sonic's arch-rival, who was built by Gerald Robotnik, Eggman's grandfather, to destroy the world. He assists Sonic and Tails into stopping King Tantinbus and Dr. Eggman from taking over the world.||Chaos Control|
|Rouge the Bat||A jewel-obessesed bat who usually helps Shadow in his adventures.||Fly High|
|Silver the Hedgehog||A mysterious hedgehog from 200 years after Sonic's timeline. He is optional to unlock.||Teleport|
|Blaze the Cat||Silver's partner, a cynical cat who manipulates fire. Like Silver, she is optional to unlock.||Fire|
|E-123 Omega||Shadow and Rouge's sidekick, a robot that rebels Eggman. He is one of the three optional characters to unlock.||Detection|
|King Tantinbus||The main antagonist of the game, and the tyrannical and malevolent ruler of Illusionary World. He pairs up with Dr. Eggman to find the Chaos Emeralds in order to defeat Sonic and take over the world. After being defeated, he collapses and dissolves.||Illusionary Temple|
|Dr. Eggman||Sonic's longtime arch-nemesis, a mad scientist with an IQ of 300 who always plans to take over the world. He is the secondary antagonist in the game, and later the true antagonist and final boss after he betrays King Tantinbus and absorbs his power to his Egg Nightmare. He is also responsible for making Princess Suena betray Sonic in order to distract him while he was fighting King Tantinbus.|
|Metal Sonic||Dr. Eggman's robotic copy of Sonic, who seems to help Eggman in his plans sometimes.|
|King Tantinbus' servants|
|Princess Suena (brainwashed)||Princess Suena after she was kidnapped and brainwashed by Dr. Eggman while Sonic was fighting King Tantinbus, causing her to betray Sonic.|
|Princess Suena||The daughter of King Tantinbus. She may look devillish and vain at the outside, but she is actually kind-hearted and benevolent inside. She assists Sonic and his friends to stop King Tantinbus, but betrays them near the end of the game thanks to Dr. Eggman. After Eggman has been defeated, Suena gives Sonic a kiss, much to Amy's annoyance, and promises she will rule Illusionary World with benevolence and kindness after her father's death. She seems to have a crush on Sonic, and has a fierce rivalry with Amy Rose.|
|Shopkeeper||A friendly Lusio who sells items to Sonic and his friends.||Every place that has shops.|
|Cream the Rabbit|
|Vector the Crocodile|
- This is the second Sonic RPG game.