The picture, taken in April by her mother, the Duchess of Cambridge, shows the princess at the family's home, Anmer Hall, in Norfolk, the BBC reported.
The couple released a similar photograph of Charlotte last year to celebrate her turning one.
The Kensington Palace said in a statement: "The Duke and Duchess are very pleased to share this photograph as they celebrate Princess Charlotte's second birthday.
"Their Royal Highnesses would like to thank everyone for all of the lovely messages they have received."
In the image, Charlotte is wearing a knitted yellow cardigan with a sheep motif and a navy blue clip in her hair.
The family is expected to throw a birthday party for the Princess later in the day.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
About VDC
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.