The effect of neutron heating on the burn characteristics of inertial confinement fusion pellets is investigated by applying the calculational method developed in an earlier paper (Part I). The basic equations are time-dependent transport equations for fusion neutrons and recoil ions, being written in terms of the modified Eulerian coordinates originally proposed by Wienke (1974). After incorporating these equations into the one-dimensional hydrodynamics code MEDUSA, burn simulations are made for isobaric D-T pellets models compressed to 1,000 times the liquid density. It is found that in reactor-grade pellets, the inclusion of neutron heating decreases the fuel gain from the values obtained by neglecting the neutron heating. Calculations neglecting the energy transport by recoil ions overestimate the neutron energy deposition to plasma ions, The energy spectrum of neutrons emitted out of a typical D-T burning pellet is also shown. These neutrons contain fast components whose energies reach more than 20 MeV.