Alone in the Dark: The New Nightmare is the fourth installment in the survival horror video game series Alone in the Dark. The player can choose which of the two protagonists to play as. Carnby’s side of the plot focuses mainly on fighting monsters through physical means, while Aline’s is more centered on puzzle-solving. The two occasionally meet, and the main plot areas intersect.

Set on October 31, 2001, Edward Carnby’s best friend and partner, Charles Fiske, has been found dead off the coast of Shadow Island, a mysterious island near the coast of Massachusetts. Carnby’s investigation quickly leads him to Frederick Johnson, who informs him of Fiske’s search for three ancient tablets with the ability to unlock an incredible and dangerous power. Johnson pleads with Carnby to take Fiske’s place and reopen the investigation in order to recover the tablets. Carnby accepts and makes it his mission to find Fiske’s killer.

Johnson introduces Edward to Aline Cedrac, an intelligent young university professor. She joins Edward in recovering the missing tablets and assisting Professor Obed Morton, whom she believes to be her father. While flying over the coast of Shadow Island, Edward and Aline’s plane comes under attack by an unknown creature. Both jump from the plane and parachute to the ground, but are separated immediately. Edward lands in the dense forest just outside a manor, while Aline lands on the roof of the manor itself.