The game begins with a surreal sequence, wherein an unknown party asks the player "What do you remember about that day?" The player is given several dialogue choices that build a cohesive description of "that day," though at this time, the player is not aware of the event's importance (or even occurrence). Before the game properly begins, the player is asked to draw an image depicting this mysterious scene, introducing them to the game's core "draw" functionality.
Following this is an animation sequence wherein a Raposa character from the previous game, Heather, recovers from a nightmare. She is shown to possess a red-colored jewel pendant, which later plays an important role in guiding the characters to various places in the game world. In the same sequence, Heather is abducted by a darkness which emanated from a scepter she discovered in a beached treasure chest in the middle of the night. The next morning, when the other characters realize she's missing, a search for her is dramatically cut short by the appearance of the last game's antagonist, Wilfre, who causes the majority of the Raposa villagers to vanish, reveals himself as Heather's captor, and ultimately destroys the village itself. The remaining characters (Mari, Jowee, Issac and his daughter, Pirate Beard, Mike, and Crazy Barks) flee to the back of a massive turtle delivered, upon request, by the Creator (understood to be the person playing the game).
Their numbers sorely reduced and their home ruined, the game follows the Raposa's struggle to reunite with their fellows and, with the aid of the Creator's endowed avatar (the Hero, drawn and controlled by the player), defeat the villain Wilfre before he can realize his as-yet unknown goals.
Source: Wikipedia, "Drawn to Life: The Next Chapter", available under the CC-BY-SA License.