The game begins in 1945 as Vito returns home from World War II after serving in the U.S. Army to avoid a prison sentence for a botched robbery. He reunites with his childhood best friend, , who has already established himself in the criminal underworld. Vito soon discovers his late father left the family with a $2,000 debt, prompting him to start working for Joe and local mobsters to pay it off. Act 2: Prison and the Rise to Status

Upon his return, Vito joins Joe in the , led by Don Carlo Falcone. The two officially become "made men" after successfully eliminating rival mob boss Alberto Clemente. Act 3: The Tragedy of Loyalty

Henry is brutally murdered by a Chinese Triad gang. In their quest for revenge, Vito and Joe accidentally trigger a massive war between the Triads and the Italian mob.

To cover their mounting financial losses and debts to a loan shark named Bruno, Vito even carries out a hit on Tommy Angelo (the protagonist of the first Mafia game). The Ending: A Hollow Victory

In the final chapter, Leo Galante returns to offer Vito a way out: he must kill Don Carlo Falcone to end the war and save his own life. Vito succeeds but discovers the cost of his survival: