Aspiring actors, film buffs, and party-game players take the onscreen roles of their favorite movie stars in Yoostar 2. Based on the original Yoostar movie-karaoke machine for home computers, Yoostar 2 plays on PS3 consoles equipped with the PlayStation Eye camera, a component of the PlayStation Move add-on. The game uses the camera to capture players' performances, and then projects them into famous scenes from feature films and classic television series.

The movie and TV clips in the game have been altered to remove the original actors but retain the background, allowing players to be, in essence, "green-screened" into each scene. When recording a performance, onscreen guides help players determine where to stand in order to fit the scale of the background scenery. A teleprompter displays the scene's original dialog, but players are free to ad-lib their own lines.

Once a performance has been recorded and the software incorporates it into the scene, the resulting video file can be saved and replayed, or shared online, with built-in upload paths to Facebook, the PlayStation Network, and the developer's own Yoostar.com. The retail game comes with 60 transcendentally famous, highly quotable, or cult-favorite scenes, taken from Hollywood films and TV shows by big-time studios including Paramount, Universal, and Warner Bros. Yoostar 2 players can purchase additional movie scenes as downloadable content.