The second season of MF Ghost follows the continuation of the MFG tournament, a public road racing series held in Japan in an era dominated by autonomous vehicles. The focus is on the second race of the season, the Ashinoko GT, which takes place on the challenging courses around Lake Ashinoko.

The main protagonist is Kanata Katagiri, also known as Kanata Livington, a young British-Japanese driver who returned to Japan to find his father. He drives an underpowered Toyota 86 that he compensates for with extraordinary technique, honed by his training under Takumi Fujiwara in England. He is joined by a cast of formidable rivals, including the previous winner Michael Beckenbauer in a Porsche 718 Cayman S and the awakening genius Kouki Sawatari in an Alpine A110. A new and significant rival is introduced: Sena Moroboshi, a protégé of the legendary Keisuke Takahashi, who drives a Toyota GR Supra and immediately sets his sights on defeating Kanata. Kanata is supported by his landlord and love interest, Ren Saionji, who secretly works as one of the MFG Angels, the racing circuit's promotional models.

The second race at Lake Ashinoko begins under treacherous conditions. A heavy downpour soaks the track, and the course features a hazardous "Death Area" covered in slippery volcanic ash, making traction extremely difficult for the high-powered supercars. Despite starting from tenth place, Kanata uses his masterful car control and rally-style drifting to navigate the slippery traps and the dense fog known as the "Demon of Lake Ashinoko," where he uses a unique countdown technique to navigate with zero visibility. The race is a fierce battle of attrition, with drivers like Daigo Oishi and champion Fujin Ishigami spinning out or crashing. Kanata steadily climbs through the ranks, engaging in intense battles against high-powered 4WD machines like Kaito Akabane's Ferrari 488 GTB. In a dramatic final lap, Kanata fights hard against the superior horsepower of his rivals but ultimately finishes in a position that proves his talent to the world.

Following the conclusion of the Ashinoko GT, the story moves toward the third race, The Peninsula Manazuru. Feeling the need for more power, Kanata and his mechanic Ogata upgrade the 86 by installing a turbocharger, significantly boosting its combat capabilities. However, just before the final race, a personal tragedy strikes. Kanata injures his left elbow while saving Ren from falling onto train tracks. In severe pain and with a handicap that affects his shifting, Kanata nonetheless decides to race. The season ends as the Manazuru race begins, with Kanata struggling against his injury and new rivals, including the formidable Sena Moroboshi, leaving his fate on the circuit uncertain.