Chapter 2 discusses the pre-Spanish period in the Philippines, highlighting the existence of rich native literature, customs, and traditions prior to Spanish colonization. It details various forms of pre-Spanish literature, including legends, folk tales, epic poetry, and folk songs, while noting the destruction of some records by Spanish friars. The chapter also mentions various examples of epics from different regions and outlines poetic forms used, such as epigrams, riddles, and chants.