|“||I kinda remember something. Something bad happened to me, didn't it?||”|
–Emma Sloan to Alan Wake
Act II of Alan Wake's American Nightmare consists of three chapters. In this act, Alan Wake finds himself and other characters have gone through a time loop where Alan has to replay the same events over, only this time with easier conditions. The radios in this act involves Eddie Rodman and his relationship with his "many" listeners.
Act II: Setback
Alan realizes he is back at the canyon. He heads back to check on Emma Sloan, who is a little confused on the whole "time loop" situation. She states how she faintly remembers something bad happening to her, and then tells Alan that she had all three items for him, but some Taken ran off into the old mine with it. Alan heads off to retrieve it, where he notices the cobwebs of the spiders. At first, spiders hide from him, but when he obtains the battery at the back of the mine, they begin to attack him. He runs back to the motel and asks Emma to charge the battery to which she does. He heads back up to the oil tower and puts everything in place and activates it all. The satellite falls out of the sky and destroys the oil tower once again, lighting up the area in flames. He begins to make his way back to Emma, where he remembers that at this point that she would be in trouble, only for him to be attacked himself throughout the flames. He deals with them and the Taken trying to kill Emma.
After he saves her, Emma states how she already has the keys for Alan to search the motel rooms for what he needs. As Alan tells Emma to stay put and to stay on the light, Emma agrees with him, only for the door to shut behind Alan as he leaves the garage. The Taken turn off the lights and kill her once again. Alan, helpless to save her, heads to the room with Michael Farabee in it and obtains the keys.
Act II: Progress
Alan drives to the Observatory once again, where this time, he remembers to pick up the imaging array from Dr. Rachel Meadows's car. He makes his way back up to the observatory and presses the buzzer, where Rachel at first tells him to go away due to her belief that he was Mr. Scratch, but then realizes from the previous encounter that it wasn't him. Baffled by this, she lets Alan in, and tells him to place the imaging array into the telescope. He replaces the imaging array, and tells Rachel to not start it up, since he has to do the coolant valves. This time, he only has to turn the primary valve.
He makes his way there and turns on the primary coolant valves, only for a car to be thrown in his direction, but fortunately hits the fence and misses him. He makes his way back up to the observatory whilst being attacked by numerous Taken. He makes his way back up to Rachel, where she soon tells him that whilst the signal printout is still incomplete, it has more information than it previously did. Rachel, being a scientist, is still baffled by these sorts of events and assumes that everything may just be a delusion. Alan takes the print out and makes his way to the Drive-In Theater.
Act II: Relapse
Alan gets out of his car at the entrance to the theater, and enters the guard post to obtain the keys, where Serena Valdivia is yet again under the influence of the Dark Presence and tries to seduce him. He manages to convince her otherwise and takes the keys to the gates so he can turn on the power. As he makes his way there, another tremor is created by Mr. Scratch in the car park, throwing cars and vans about. Mr. Scratch gets angry at what Alan is doing, but knows that it just will not work. Alan makes his way to the transformer yard where he spots cobwebs surrounding the area. He manages to turn on the power, where he is soon attacked by numerous spiders. He manages to escape them, and starts to make his way to the projector booth, only to be greeted by a slightly stronger version of Mr. Scratch's security force. Alan manages to beat it, ridding the darkness from the projector booth.
Despite already knowing the code, Alan could either turn on the lights in the guard post to help Serena or go straight to the projector booth. He heads to the projector booth, where he has to turn the clock to late at night, the calendar to the end of the summer, have the lamp pointing at the fire extinguisher and have the film-noir Alex Casey poster visible. He follows what it says on the page, but yet again the environment darkens up. Alan realizes that this is not enough again, and is yet again trapped in an endless dark environment, being tormented by Mr. Scratch. Mr. Scratch yet again distresses his anger, and insists that Alan will not be able to escape his trap. Alan is then yet again spat out by the darkness and wakes up in the canyon yet again.