Like the previous game, NBA Street Vol. 2 consists of 3-on-3 street basketball. In the game, there are 29 fully playable NBA teams from the 2002–03 season in all modes once unlocked. The game also features four different modes to choose from including a Pick Up Game (Regular game, default is 21 points, and can be set to 50 points), NBA Challenge (Beat all NBA teams and the legends from there with a normal or customizable team), Be a Legend (Create players' own team) and Street School (Learn the basic and advanced moves and tricks in NBA Street Vol. 2). The game also features several new trick moves and dunks, as well as introducing a level two "gamebreaker". Players will also earn reward points after every game that they win, which can be used to purchase many rewards such as players, jerseys, and courts. If players win a certain number of games, some rewards will be automatically unlocked.
In addition to "street legends", players can also unlock "NBA legends", including Larry Bird, Julius Erving, and others.
The game, at the time of release, was the only available game on the market in which three incarnations of Michael Jordan are playable: the 1985 Chicago Bulls Jordan, the 1996 Chicago Bulls Jordan, and the Washington Wizards Jordan. It is possible to play as a team made up of the three different Jordans (or the "All-Jordan" team as Bobbito García refers to it).
The game also features an in-game soundtrack with tracks from artists including Nate Dogg featuring Eve, Pete Rock & CL Smooth, Erick Sermon featuring Redman, Benzino, MC Lyte, Black Sheep and a previously unreleased song from Nelly, who appears in the game as a playable character, along with the other members of the St. Lunatics. It also features instrumental beats from producer Just Blaze.
A feature called Gamebreaker is included. When players fill up their gamebreaker meter, they have the option to either use a Gamebreaker One or save it for a Gamebreaker Two. Either way, once they use it, their team will earn more points and the opposing team will lose points. However, if players or the opposing team takes too long, they will lose their gamebreaker. If the opposing team saves their Gamebreaker, players they can use their Gamebreaker to cancel theirs.