Xanadu (????, Zanadu), also known as Xanadu: Dragon Slayer II, is an action role-playing game developed by Nihon Falcom and released in 1985 for the PC-8801, X1, PC-8001, PC-9801, FM-7 and MSX computers. Enhanced remakes were later released for the Sega Saturn, PC-9801 and Windows platforms. It is the second entry in the Dragon Slayer series, preceded by Dragon Slayer and followed by Dragon Slayer Jr: Romancia, which, as most games in the Dragon Slayer series, have little relation with each other.

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Xanadu set a sales record for computer games in Japan, with over 400,000 copies sold there in 1985. It was one of the foundations of the role-playing genre, particularly the action role-playing subgenre, featuring real-time action combat combined with full-fledged character statistics, innovative gameplay systems such as the Karma meter and individual experience for equipped items, and platform game elements combined with the dungeon crawl gameplay of its predecessor. It also had towns to explore and introduced equipment that change the player character's visible appearance, food that is consumed slowly over time and is essential for keeping the player character alive, and magic used to attack enemies from a distance.

The following year saw the release of Xanadu Scenario II, an early example of an expansion pack. The game spawned the Xanadu series, a spin-off from the Dragon Slayer franchise.

Dragon Slayer laid the foundations for the action role-playing game genre, influencing future series like Ys. Xanadu was an early real-time action RPG with full-fledged character statistics, and it introduced several innovative gameplay mechanics, such as the Karma morality system, individual experience for equipped items, a heavy emphasis on puzzle-solving, equipment that changes the player character's visible appearance, food that is consumed slowly over time and is essential for keeping the player character alive, magic that can be used to attack enemies from a distance, and training facilities to improve various statistics. It also introduced a platformer-style side-scrolling view, including the ability to jump. The side-scrolling view is used during exploration and switches to the overhead view of its predecessor during battle, while certain rooms also use an overhead view. This gameplay is credited as a precursor to the development of the metroidvania genre.

The game begins with the player directly in control of the protagonist, with little to no introduction. To progress, one must speak with the king, who gives the player the bare essentials and a small amount of cash to train. After selecting which attributes to raise, the player must navigate of the city and into the vast underground complex. Finding this exit is the first of many puzzles the player will encounter, though the game is not a puzzle game but a role-playing video game with puzzle game and adventure game elements.

The protagonist can move left and right, climb down ladders, jump, cast equipped spells, enter doors, or use equipped items. Similar to Falcom's own later Ys series, damage is done by walking directly into the enemy; however, unlike with Ys, in Xanadu it doesn't matter which part of the target's body the player character runs into.

The main view in Xanadu is a side-scrolling platformer view, though it is more in line with Sorcerian than a typical platformer such as Super Mario Bros. When engaging in a battle or entering a building, the view is changed to a top-down perspective. Each "layer" or stratum has its own complex network of buildings, caves and tunnels.

To level up, the player must visit temples, where a minister will grant a level up to the protagonist provided the player has enough experience points. Otherwise, the minister will let the player know how much is needed to go up a level. There are two types of levels: fighting and magic. Fighting experience is raised through combat, and magic though spell use. The two systems go hand in hand and are used at the same time. Each enemy killed is either good or bad, even though all enemies will attack the player character. If the player kills too many good enemies, the Karma statistic will rise, at which point the temples will refuse to level up the player. This can be remedied by drinking a black poison bottle; these cannot be carried nor bought, and must be found within dungeons, and will remove half the protagonist's hit points.

All equippable items, such as swords and armor, have their own experience levels. This is raised simply by using the item; for example, swords by attacking, armor by being hit, magic by casting the spell, and so on. In this sense, a highly developed dagger will be more effective than a brand new longsword. A highly developed sword will be far more useful than a maxed out dagger, so it is vital to upgrade equipment.

Xanadu has a limited number of enemies in each area, to deter powerleveling. This requires the player to think ahead about how he handles the enemies, how to get the most experience out of them, and to keep Karma from getting too high. This is a factor that must be juggled with weapon experience; if the player defeats all enemies using a dagger, then upgrades to a sword and proceeds to fight the area's boss, the player will be at a disadvantage and should have either kept the highly developed dagger, or bought the sword early on so as to level it up with the finite number of encounters in the area. Every area generally has at least one boss, although it is not always required to fight them.