Lysosomal Ca²⁺ homeostasis is implicated in disease and controls many lysosomal functions. A key in understanding lysosomal Ca²⁺ signaling was the discovery of the two‐pore channels (TPCs) and their potential activation by NAADP. Recent work concluded that the TPCs function as a PI(3,5)P₂ activated channels regulated by mTORC1, but not by NAADP. Here, we identified Mg²⁺ and the MAPKs, JNK and P38 as novel regulators of TPC2. Cytoplasmic Mg²⁺ specifically inhibited TPC2 outward current, whereas lysosomal Mg²⁺ partially inhibited both outward and inward currents in a lysosomal lumen pH‐dependent manner. Under controlled Mg²⁺, TPC2 is readily activated by NAADP with channel properties identical to those in response to PI(3,5)P₂. Moreover, TPC2 is robustly regulated by P38 and JNK. Notably, NAADP‐mediated Ca²⁺ release in intact cells is regulated by Mg²⁺, PI(3,5)P₂, and P38/JNK kinases, thus paralleling regulation of TPC2 currents. Our data affirm a key role for TPC2 in NAADP‐mediated Ca²⁺ signaling and link this pathway to Mg²⁺ homeostasis and MAP kinases, pointing to roles for lysosomal Ca²⁺ in cell growth, inflammation and cancer.