QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-10525

Nuveen North Carolina Dividend Advantage Municipal Fund 2
(Exact name of registrant as specified in charter)

333 West Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip code)

Jessica R. Droeger—Vice President and Secretary
333 West Wacker Drive, Chicago, Illinois 60606
(Name and address of agent for service)

Registrant's telephone number, including area code: 312-917-7700

Date of fiscal year end: 05/31

Date of reporting period: 02/28/05

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments

Portfolio of Investments (Unaudited)
Nuveen North Carolina Dividend Advantage Municipal Fund 2 (NNO)
February 28, 2005

	Principal		Optional Call		Market
	Amount (000)	Description⁽¹⁾	Provisions*	Ratings**	Value

		Education and Civic Organizations - 26.6% (17.9% of Total Investments)

		Appalachian State University, North Carolina, Housing and Student Center System Revenue Refunding
		Bonds, Series 2001:
$	600	5.125%, 7/15/24 - MBIA Insured	1/11 at 101.00	Aaa	$ 639,948
	200	5.125%, 7/15/27 - MBIA Insured	1/11 at 101.00	Aaa	209,606

		Appalachian State University, North Carolina, Housing and Student Center System Revenue Refunding
		Bonds, Series 2002:
	1,040	5.000%, 7/15/14 - MBIA Insured	7/12 at 100.00	Aaa	1,132,893
	1,000	5.000%, 7/15/15 - MBIA Insured	7/12 at 100.00	Aaa	1,071,510

	500	East Carolina University, General Revenue Bonds, Series 2003A, 5.000%, 5/01/19 - AMBAC Insured	5/13 at 100.00	Aaa	536,455

		North Carolina Capital Facilities Financing Agency, Revenue Bonds, Duke University, Series 2001A:
	3,750	5.125%, 10/01/26	10/11 at 100.00	AA+	3,914,625
	2,000	5.125%, 10/01/41	10/11 at 100.00	AA+	2,060,300

	1,840	University of North Carolina, Chapel Hill, System Net Revenue Bonds, Series 2002B, 5.000%,	No Opt. Call	AA+	2,027,183
		12/01/11

	400	University of North Carolina, Greensboro, General Revenue Refunding Bonds, Series 2002B, 5.375%,	4/11 at 101.00	AAA	441,964
		4/01/17 - FSA Insured

		University of North Carolina System, Pooled Revenue Refunding Bonds, Series 2002A:
	1,155	5.375%, 4/01/16 - AMBAC Insured	10/12 at 100.00	AAA	1,284,972
	1,100	5.375%, 4/01/19 - AMBAC Insured	10/12 at 100.00	AAA	1,219,713

		University of North Carolina System, Pooled Revenue Bonds, Series 2004C:
	250	5.000%, 4/01/21 - AMBAC Insured	4/14 at 100.00	Aaa	266,630
	500	5.000%, 4/01/24 - AMBAC Insured	4/14 at 100.00	Aaa	528,595

		Healthcare - 21.3% (14.4% of Total Investments)

	2,130	Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare System Revenue Bonds,	1/11 at 101.00	AA	2,172,110
		Carolinas Healthcare System, Series 2001A, 5.000%, 1/15/31

	1,000	New Hanover County, North Carolina, Hospital Revenue Bonds, New Hanover Regional Medical Center,	4/05 at 101.00	AAA	1,003,750
		Series 1993, 4.750%, 10/01/23 - AMBAC Insured

	1,005	North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Union Regional Medical	1/12 at 100.00	A	1,082,918
		Center, Series 2002A, 5.250%, 1/01/13

	2,000	North Carolina Medical Care Commission, Healthcare Facilities Revenue Bonds, Novant Health	11/13 at 100.00	AA-	2,103,320
		Obligated Group, Series 2003A, 5.000%, 11/01/20

		North Carolina Medical Care Commission, Revenue Bonds, Cleveland County Healthcare System, Series
		2004A:
	595	5.250%, 7/01/20 - AMBAC Insured	7/14 at 100.00	AAA	650,043
	500	5.250%, 7/01/22 - AMBAC Insured	7/14 at 100.00	AAA	542,205

		North Carolina Medical Care Commission, Hospital Revenue Bonds, Southeastern Regional Medical
		Center, Series 2002:
	1,000	5.500%, 6/01/15	6/12 at 101.00	A	1,089,700
	2,000	5.250%, 6/01/22	6/12 at 101.00	A	2,083,460

	500	North Carolina Medical Care Commission, Revenue Bonds, Northeast Medical Center, Series 2004,	11/14 at 100.00	AA-	521,000
		5.000%, 11/01/24

	1,000	North Carolina Medical Care Commission, Health System Revenue Bonds, Mission-St. Joseph's Health	10/11 at 101.00	AA	1,049,050
		System, Series 2001, 5.250%, 10/01/31

		Housing/Multifamily - 6.4% (4.3% of Total Investments)

	3,500	Mecklenburg County, North Carolina, FNMA Multifamily Housing Revenue Bonds, Sycamore Green	1/12 at 102.00	AAA	3,699,885
		Apartments, Series 2001, 5.500%, 1/15/35 (Alternative Minimum Tax) (Mandatory put 1/15/23) - FGIC
		Insured

		Housing/Single Family - 3.9% (2.7% of Total Investments)

	420	North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, 1998 Trust Agreement, Series	7/10 at 100.00	AAA	428,488
		10A, 5.400%, 7/01/32 (Alternative Minimum Tax) - AMBAC Insured

		North Carolina Housing Finance Agency, Home Ownership Revenue Bonds, Series 13A:
	885	4.700%, 7/01/12 (Alternative Minimum Tax)	7/11 at 100.00	AA	920,011
	885	4.850%, 7/01/13 (Alternative Minimum Tax)	7/11 at 100.00	AA	923,852

		Industrials - 1.4% (0.9% of Total Investments)

	800	North Carolina Capital Facilities Financing Agency, Exempt Facilities Revenue Bonds, Waste	No Opt. Call	BBB	801,912
		Management Inc., Series 2001, 3.750%, 8/01/14 (Alternative Minimum Tax) (Mandatory put 8/01/07)

		Long-Term Care - 0.7% (0.5% of Total Investments)

	400	North Carolina Medical Care Commission, Revenue Bonds, United Methodist Retirement Homes Inc.,	10/14 at 100.00	N/R	399,744
		Series 2005A, 5.500%, 10/01/35

		Materials - 2.0% (1.4% of Total Investments)

	1,100	Northampton County Industrial Facilities and Pollution Control Financing Authority, North Carolina,	2/11 at 101.00	BBB	1,174,250
		Environmental Improvement Revenue Bonds, International Paper Company, Series 2001A, 6.200%,
		2/01/25 (Alternative Minimum Tax)

		Tax Obligation/General - 2.4% (1.6% of Total Investments)

	250	Durham County, North Carolina, General Obligation Bonds, Series 2000, 5.600%, 5/01/15	5/10 at 102.00	AAA	283,215

	1,000	North Carolina, General Obligation Bonds, Series 2004A, 5.000%, 3/01/22	3/14 at 100.00	AAA	1,073,060

		Tax Obligation/Limited - 29.0% (19.6% of Total Investments)

	30	Cabarrus County, North Carolina, Certificates of Participation, Series 2002, 5.250%, 2/01/16	2/13 at 100.00	AA-	32,684

	1,650	Charlotte, North Carolina, Certificates of Participation, Governmental Facilities Projects, Series	6/13 at 100.00	AA+	1,712,618
		2003G, 5.000%, 6/01/28

		Charlotte, North Carolina, Storm Water Fee Revenue Bonds, Series 2002:
	1,850	5.250%, 6/01/18	6/12 at 101.00	AA+	2,031,134
	400	5.250%, 6/01/19	6/12 at 101.00	AA+	438,604

	1,325	Dare County, North Carolina, Certificates of Participation, Series 2002, 5.250%, 6/01/17 - AMBAC	12/12 at 100.00	AAA	1,452,783
		Insured

		Hartnett County, North Carolina, Certificates of Participation, Series 2002:
	1,000	5.250%, 12/01/15 - FSA Insured	12/12 at 101.00	AAA	1,105,110
	2,025	5.375%, 12/01/16 - FSA Insured	12/12 at 101.00	AAA	2,243,498

	715	Lee County, North Carolina, Certificates of Participation, Public Schools and Community College,	4/14 at 100.00	AAA	781,109
		Series 2004, 5.250%, 4/01/20 - FSA Insured

	1,380	Pasquotank County, North Carolina, Certificates of Participation, Series 2004, 5.000%, 6/01/25 -	6/14 at 100.00	AAA	1,449,276
		MBIA Insured

	2,070	Pitt County, North Carolina, Certificates of Participation, School Facilities Project, Series	4/14 at 100.00	AAA	2,159,797
		2004B, 5.000%, 4/01/29 - AMBAC Insured

		Raleigh, North Carolina, Certificates of Participation, Downtown Improvement Project, Series 2004B:
	805	5.000%, 6/01/20	6/14 at 100.00	AA+	855,514
	1,310	5.000%, 6/01/21	6/14 at 100.00	AA+	1,388,076

	1,000	Randolph County, North Carolina, Certificates of Participation, Series 2004, 5.000%, 6/01/20 - FSA	6/14 at 102.00	AAA	1,076,240
		Insured

		Transportation - 15.6% (10.5% of Total Investments)

	2,035	Charlotte, North Carolina, Airport Revenue Bonds, Series 2004A, 5.000%, 7/01/34 - MBIA Insured	7/14 at 100.00	AAA	2,106,286

		Raleigh Durham Airport Authority, North Carolina, Airport Revenue Bonds, Series 2001A:
	1,000	5.250%, 11/01/15 - FGIC Insured	5/11 at 101.00	Aaa	1,092,380
	2,320	5.250%, 11/01/16 - FGIC Insured	5/11 at 101.00	Aaa	2,534,322
	2,230	5.250%, 11/01/17 - FGIC Insured	5/11 at 101.00	Aaa	2,433,042

		University of North Carolina, Charlotte, Parking System Revenue Bonds, Series 2002:
	270	5.000%, 1/01/20 - MBIA Insured	1/12 at 101.00	Aaa	288,492
	500	5.125%, 1/01/27 - MBIA Insured	1/12 at 101.00	Aaa	526,845

		U.S. Guaranteed * - 11.7% (7.9% of Total Investments)**

	3,000	Fayetteville Public Works Commission, North Carolina, Revenue Bonds, Series 1997, 5.125%, 3/01/24	3/07 at 101.00	AAA	3,177,120
		(Pre-refunded to 3/01/07) - FSA Insured

	3,200	Wake County, North Carolina, General Obligation School Bonds, Series 2000, 5.400%, 2/01/13	2/10 at 101.50	AAA	3,589,152
		(Pre-refunded to 2/01/10)

		Utilities - 12.1% (8.2% of Total Investments)

	2,500	North Carolina Eastern Municipal Power Agency, Power System Revenue Refunding Bonds, Series 1993B,	7/05 at 100.00	AAA	2,505,925
		5.500%, 1/01/17 - FGIC Insured

	1,500	North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 1999B, 6.500%,	1/10 at 101.00	A3	1,686,795
		1/01/20

	2,600	Wake County Industrial Facilities and Pollution Control Financing Authority, North Carolina,	2/12 at 101.00	A3	2,794,038
		Revenue Refunding Bonds, Carolina Power and Light Company, Series 2002, 5.375%, 2/01/17

		Water and Sewer - 15.0% (10.1% of Total Investments)

	2,520	Charlotte, North Carolina, Water and Sewer System Revenue Bonds, Series 2002, 5.250%, 7/01/13	No Opt. Call	AAA	2,833,614

	1,000	Durham County, North Carolina, Enterprise System Revenue Bonds, Series 2002, 5.000%, 6/01/23 -	6/13 at 100.00	AAA	1,058,070
		MBIA Insured

	1,465	Orange Water and Sewerage Authority, North Carolina, Water and Sewerage System Revenue Bonds,	7/11 at 101.00	AA+	1,567,005
		Series 2001, 5.000%, 7/01/20

		Raleigh, North Carolina, Combined Enterprise System Revenue Bonds, Series 2004:
	1,000	5.000%, 3/01/21	3/14 at 100.00	AAA	1,069,940
	2,000	5.000%, 3/01/22	3/14 at 100.00	AAA	2,135,200

$	80,005	Total Long-Term Investments (cost $81,367,698) - 148.1%			85,461,036

		Other Assets Less Liabilities - 0.4%			235,158

		Preferred Shares, at Liquidation Value - (48.5)%			(28,000,000)

		Net Assets Applicable to Common Shares - 100%			$57,696,194


	Forward Swap Contracts outstanding at Feburary 28, 2005:

			Swap	Unrealized
	Notional	Effective	Termination	Appreciation
	Amount	Date⁽²⁾	Date	(Depreciation)

Agreement with Morgan Stanley dated December 2, 2004, to
pay semi-annually the notional amount multiplied by 5.465%
(annualized) and receive quarterly the notional amount multiplied
by the three-month USD-LIBOR (United States Dollar-London Inter-
Bank Offered Rates).	$1,750,000	7/11/05	7/11/25	$(65,483)

Agreement with Morgan Stanley dated December 8, 2004, to pay
semi-annually the notional amount multiplied by 5.313% (annualized)
and receive quarterly the notional amount multiplied by the three-month
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates).	600,000	7/18/05	7/18/35	(9,524)

Agreement with JPMorgan dated January 11, 2005, to pay semi-annually
the notional amount multiplied by 5.235% (annualized) and receive quarterly
the notional amount multiplied by the three-month USD-LIBOR (United States
Dollar-London Inter-Bank Offered Rates).	1,800,000	8/17/05	8/17/25	(12,795)

				$(87,802)


(1)	All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares
	unless otherwise noted.
(2)	Effective date represents the date on which both the Fund and counterparty commence interest payment
	accruals on each forward swap contract.
*	Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There
	may be other call provisions at varying prices at later dates.
**	Ratings: Using the higher of Standard & Poor's or Moody's rating.
***	Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency
	securities which ensures the timely payment of principal and interest.
N/R	Investment is not rated.

	Income Tax Information

	The following information is presented on an income tax basis. Differences between amounts for financial
	statement and federal income tax purposes are primarily due to timing differences in recognizing income on
	taxable market discount securities and timing differences in recognizing certain gains and losses on
	security transactions.

	At February 28, 2005, the cost of investments was $81,363,739.

	Gross unrealized appreciation and gross unrealized depreciation of investments at February 28, 2005,
	were as follows:

	Gross unrealized:
	Appreciation	$4,097,297
	Depreciation	-

	Net unrealized appreciation of investments	$4,097,297

Item 2. Controls and Procedures.

The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Nuveen North Carolina Dividend Advantage Municipal Fund 2

By (Signature and Title)* /s/ Jessica R. Droeger--Vice President and Secretary

Date 04/29/05

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/ Gifford R. Zimmerman--Chief Administrative Officer (principal executive officer)

Date 04/29/05

By (Signature and Title)* /s/ Stephen D. Foy--Vice President and Controller (principal financial officer)

Date 04/29/05

* Print the name and title of each signing officer under his or her signature.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

SIGNATURES

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q