The Quilt is a twisted, nightmarish version of Ned Needlemeyer's bed and acts as the main HUB for the game. It has five large patches which act as the entryways to different nightmare realms. Whenever Ned approaches one of the patches, it transforms into a portal and a shadowy creature appears to greet him. Once the portal is chosen, the quilt flies around and you go into the portal. Ned can choose to return to the Quilt at any time, but whenever he does, he'll lose an hour (Ned has eight hours before he awakens).
- Bathroom - An underground area of a lavatory, this sewer system is full of toilets and bathtubs, as well as a network of rusty old pipes. The place is infested with hostile rats who would love to give anyone a shock. Lurking within the plumbing is a slithering drain snake.
- Attic, Basement and Beyond - An exhibition of the strange and bizarre, this nightmare is the most surreal. Much of this area resembles a curio museum full of oddities, but there is also a forest with a freak show featuring a dysfunctional family.
- Medical Nightmare - Two different areas await you in the dark waiting room. One area is a hospital, whose hallways are filled with doctors just waiting to operate. The other area is a dentist's office where you end up inside an inhuman mouth full of dental problems.
- Alcatraz Elementary School - This elementary school looks more like a prison compound than anything else. Many of the students here are delinquents and bullies. There is also a giant chalkboard with problems way too complex, and a class where poorly crafted art projects seek revenge.
- Graveyard - The creepiest of all the nightmares, this massive graveyard stretches on beyond the horizon. It is inhabited by spirits and horrors from beyond the grave.