Fatal Frame II is set in the fictional Minakami region of Japan. While a dam is being planned for construction in a forest at this location in the game's present, the site is also home to Minakami Village (lit. "All God's Village"), a "[l]ost" settlement where the majority of the game takes place. The player learns that Minakami Village was host to the "Crimson Sacrifice Ritual", the failure of which caused the settlement to vanish—thus earning it the name "The Lost Village". In the game's present, there is an urban legend about the Lost Village, where people who become lost in the Minakami forest will become trapped forever in the village.
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 in the dam construction. The main antagonist is the vengeful spirit of Sae Kurosawa, the sole Twin Shrine Maiden sacrificed for the failed ritual. She yearns to reunite with her twin...
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