Alone in the Dark 3 is a direct sequel to Alone in the Dark 2 and the last game of the original canon of the series. It has the exact same gameplay as the first two games but with reload action removed, more responsive shooting/fighting and more puzzles than the previous game. The main theme is the Wild West as Carnby is pitted against a town filled with zombie cowboy outlaws who attack him with revolvers and lever-action rifles.

It's 1925 and Edward Carnby is called to investigate the disappearance of a film crew at a two-bit ghost town known by the name of Slaughter Gulch located in the Mojave Desert in California. Among the disappeared crew is Emily Hartwood. Edward soon discovers that a curse has gripped the town, and an evil cowboy from the Badlands named Jed Stone is the one responsible for the crew's disappearance. Lurking around town are many trigger-happy sharpshooters, deranged prospectors, and bloodthirsty lost souls whom Edward must ward off with both his strength and his wit.