This time, he 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.

Edward soon discovers that a curse has gripped the town, and an evil cowboy from the Badlands named Jed Stone is the villain who is 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.

The main theme of this game 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.

In 1996, the Windows and Mac OS versions were also released in Japan by Electronic Arts Victor as Alone in the Dark 3: Ghosts in Town.