After following Yuu into the strange manor, Rei begins to "visit" the Manor of Sleep in her dreams at night in hopes of seeing him again. While exploring the manor's entrance, however, she is chased by a ghost wandering its halls. The ghost was covered in tattoos, and after being touched by her just once, Rei wakes from her nightmare and the same tattoo begins to appear on her body, causing her pain. When asleep, Rei returns to the manor every night, looking for the truth behind the Tattooed Curse, and eventually she finds out that only those who are sole survivors of a disaster are brought to the snowy manor.

Miku Hinasaki, who lives with Rei and works as her assistant, was the only survivor of the Himuro Mansion in Fatal Frame, and she is brought into the nightmare as well. With her help, Rei is able to uncover the dark rituals that occurred inside the manor, and eventually doomed its inhabitants. The two must work fast to undo the darkness that grips the dream mansion before the curse of the tattoo consumes them, and they are forever trapped inside the nightmare.