Picking up after the events of the previous game, the story moves to the S.S. Strange Terror — a submarine built from salvaged space lab wreckage, now operating as a containment vessel for dangerous monsters. One night, humanlike screaming from the containment zone prompts a couple of crew members to open it up and check. The monster has escaped, and the handlers are already dead. With the door to the rest of the sub now open, the massacre spreads. Caught in the chaos, Jay or Alice must find a way out or a way to end it — the outcome depends entirely on the choices made.