Dragon's Lair II: Time Warp is a 1990 laserdisc video game made by the Leland Corporation, and the first true sequel to Dragon's Lair. As with the original, it consists of an animated short film that requires the player to move the joystick or press a fire button at certain times in order to continue. It takes place years after the original Dragon's Lair. Dirk has married Daphne, and the marriage has produced many children. When Daphne is kidnapped by the evil wizard Mordroc in order to be forced into marriage, Dirk's children and his mother-in-law are clearly upset by the abduction of Daphne, and Dirk must once again save her.

Home ports were announced for the Saturn, CD-i, 3DO, and Jaguar CD. Only the CD-i version was released. The game was later ported to the Wii as part of the compilation release Dragon's Lair Trilogy. A PlayStation 3 port was released on June 1, 2011. A Nintendo Switch port of the Wii Dragon's Lair Trilogy compilation was released on January 17, 2019.

Dirk the Daring must find and rescue Princess Daphne with the help of a well-spoken time machine. It seems that the time machine is (or has been) possessed by the brother of Mordroc, the foul wizard that has kidnapped Daphne. Dirk travels through several dimensions and historical eras searching for Daphne, some inspired by classic stories and Disney fairy tales such as Alice in Wonderland (1951) and Sleeping Beauty (1959), to prevent Mordroc from enslaving Daphne to his whim with the dreaded Death Ring. Voice actor Michael Rye reprises his role as the narrator in the attract sequence, as he did with Dragon's Lair and Space Ace:

Dragon's Lair: Time Warp. Spirited away to a wrinkle in time by the evil wizard Mordroc, Daphne will be forced to marry the wicked Mordroc unless Dirk can save her. Transported by a bumbling old time machine, Dirk begins the rescue mission. Do it for the children! Once the Casket of Doom has opened, Mordroc will place the Death Ring upon Daphne's finger in marriage, and she will be lost forever... in the Time Warp!

Gameplay differs from the original in two important ways. First, it follows a linear sequence of events which flow one into the next, as opposed to the randomized sequences of rooms from the first game; "dying" in the sequel also forces the player to resume from a checkpoint in the level rather than starting a randomly different level as in the original. Second, golden treasures are scattered throughout the game; getting each treasure is required to reach the final scenes. If the player misses any, at the end of the game it loops back to the first treasure missed. Unlike in the first game, the actions the player must do are prompted by a brief flash of what Dirk should use or where he should go next. However, to retrieve a golden treasure, the player may need to make a move in a direction other than what is flashing. Some scenes are randomly mirrored from left to right on a replay, limiting the player's ability to rely on memorizing the input sequence and requiring close attention during repeat attempts.

Development began in 1983 after the success of the original Dragon's Lair, and finally reached arcades eight years later. An advertisement from Don Bluth Productions featuring completed animation from stage 3 in the game had aired on television in 1984.^{[citation needed]} Creating the game's animation took three years. The game's budget was $2.3 million.

The Amiga, Atari ST, and MS-DOS versions were released in November 1990, and cost £44.95. An Apple IIGS version was also reportedly completed during the same period (IIGS-specific loading instructions and game features appear in the manual), but never released, unlike the other versions. In May 2022, a new Apple IIGS conversion was developed and released by Brutal Deluxe, based on the resources from the DOS version. The home computer versions by ReadySoft were developed over the course of about one year. In a January 1991 issue of British gaming magazine The One, David Foster was interviewed as the founder of ReadySoft and a programmer for the home computer versions of Dragon's Lair II. He said it spans six floppy disks, due to higher resolution imagery than previous laserdisc games by the Bluth Group, such as Space Ace.

Due to the arcade version of Dragon's Lair II having been unreleased at this stage in development, the game's home computer versions were made using a VHS tape as a reference, instead of a laserdisc. Foster said, "conversion is obviously easier with the laser disc as you can get a good quality freezeframe. We digitize a series of images from the laser disc, then we separate the foreground from the background, giving each element to the respective artists to touch up, which includes outlining all the characters ... when you're converting from a high-resolution laser disc to a lower resolution screen a lot of detail is lost, so a lot has to be put back in". The conversion is then edited to match the 16-color palette to that of the original footage, and compressed. He said "On average it takes about two hours of 68030 computer time to compress a single frame - that's thousands of computer hours in all. So we have four machines with 25Mhz processor speed working on it - two Great Valley Products '030s, a Commodore '030 board, and an Amiga 3000."