VirtualDub2 (formerly VirtualDub FilterMod) is an enhanced edition of the popular VirtualDuba, which supports H.264 video encoding, contains performance optimizations and includes a number of useful plugins. In terms of operation and the graphical interface offered, the tool is almost no different from its original. VirtualDub2 supports file types such as MPG, WOV, M2V, MPEG, MPV, VDR, AVI, DIVX and many others, including the ability to save individual frames to image files, extract audio to audio files, combine and share video materials, compress using multiple filters or apply basic filters (blurring, sharpening, etc.) to the image.

VirtualDub2 introduces support for more video formats and offers support for H.264 encoding. It provides compatibility with TIFF sequences, supports video manipulation tags, offers additional navigation options and a script editor to automate tasks. Creators have also optimized some algorithms which translated into increased application performance.