Continuing from the end of the main game, Alan finds himself in a surreal version of Bright Falls and realises he is still trapped in the Dark Place. Zane directs Alan to follow a signal through a cell phone in order to "focus" and guide himself through the Dark Place. While navigating the realm's shifting, dreamlike topography, Alan encounters television screens depicting a more maniacal version of himself, who uses the power of the Dark Place to narrate circumstances that plunge Alan into danger, sending hordes of Taken after him. Alan also encounters an ethereal version of Barry, a figment of his subconsciousness, who helps guide Alan safely across the abstract landscape.

Zane eventually reveals that Alan himself is the cause of his current circumstance; the maniacal version of Alan on the television screens is an irrational aspect of Alan consumed by fear, his frenzied thoughts affecting the subjective world of the Dark Place. Alan encounters a monstrous conglomeration of televisions, through which the irrational Alan tries to kill him. Alan defeats the televisions, but wakes up back in the cabin again, and realises he is still trapped.