"After nearly four months of pre-production work including set design and concept art, 'Baahubali 2' will finally go on floors today," a source from the film's unit told IANS.
According to the source, the principal cast will take part in the shooting on Thursday.
Slated to hit the screens toward the end of 2016, "Baahubali 2" will reveal why Kattappa killed Baahubali.
Starring Rana Daggubati, Prabhas, Anushka Shetty and Tamannaah Bhatia, the film is being produced Arka Media Works.
The first part of the franchise released earlier this year in Telugu, Tamil, Hindi and Malayalam and raked in over Rs.600 crore the box office worldwide.
Rajamouli had revealed that the second part would be "more emotional and with more grandeur", while speaking at Busan Asian Film Market.