Crimson Butterfly is the second installment in the Fatal Frame series, although not a direct sequel to the first title, Fatal Frame. The story follows twin sisters Mio and Mayu as they explore an abandoned village and experience encounters with the paranormal. Players must use the Camera Obscura to defeat ghosts and uncover the secrets of the village.

An Xbox port, subtitled Director's Cut, was released in 2004 and included additional features. a remake of the game titled Project Zero 2: Wii Edition was released for the Wii in 2012 in Europe and Japan.