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In this Act, it is revealed that Nicky still has nightmares about Mr. Peterson is hiding from the cops in the abandoned Museum, while Quentin, a new hire from another town for the Raven Brooks Banner, tries to find him and solve the missing children cases in town.
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Peterson is trying to figure out how to cause time loops at the Golden Apple Amusement Park, when he gets distracted by Four of the members of the Rescue Squad, in the ending of the game he successfully puts the Inventors Club (The Four members of the Rescue Squad mentioned earlier) in a time loop, looping them back to when they first entered the park. Peterson completely shuts the gate, and the screen cuts to black. He instead closes the wooden gate while threateningly staring at Nicky, as Nicky is already outside the fence but Aaron can still be easily stopped. Peterson comes out to chase him, but hears a window breaking implied to be Aaron escaping. Using a key, a trampoline, or a crowbar, he can break out in three different ways. Peterson, this time to escape his house, now with some additions, notably two new floors and a massive fence around the entire property. He has to once again outsmart and evade Mr. Once leaving the room, Nicky can easily climb out of the basement using a ladder. Trapped in a room in the basement, Nicky sits for a few seconds before Aaron comes by and unlocks the door. Peterson has kidnapped Nicky and has been possibly torturing him.
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Peterson, and is actually the Shadow Man in disguise. Peterson will disguise himself as a child to pick off the children one by one unless the kids manage to find out which one of them is Mr. Peterson doesn't intend to let him go and now wishes to imprison the intruders who dared to invade his property. Like Nicky, the Rescue Squad must outsmart and evade Mr. Peterson has successfully captured Nicky and has locked him in his basement, so six kids and friends of Nicky (known as the Rescue Squad) decide to rescue him and Aaron. Nicky tries to escape but the door at the end of the corridor is locked with three padlocks, the keys to which are unavailable, allowing Mr.
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Peterson comes in behind him when the corridor is reached. Peterson and eventually finds the key to the basement, and after solving some puzzles, reaches a corridor. Peterson then finds out that Nicky is watching him and throws him onto the other side of the road as he goes to lock the basement door and hide the basement key. Peterson locks Aaron in his basement, possibly to either punish him for Mya's death or to protect him from meeting his wife and daughter's fate. Peterson is seen one final time during the credits, digging a grave, most likely for Mya. Peterson motions his hand to tell her to stay and eat dinner. Peterson gets up and sends Aaron to his room, but before he leaves he takes Mya's doll. At dinner, Aaron takes Mya's spoon before pushing her and causing her plate to fall and break. He appears again to get the children for dinner, motioning his hand tiredly.
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Peterson became more sluggish, watching TV and appearing not to notice his daughter's concerned look for him even though she was right in front of him. Mya and Aaron hug their father to comfort him however, this wasn't enough as Mr. Peterson is seen again entering the house with his wives purse, he then lets it go before collapsing to his knees. Peterson is seen at the dinner table along with his wife and two children. Peterson plays a minor role in this game as the game focuses more on his two children, Mya and Aaron.
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With the losses of his beloved wife and daughter in just a short period of time, these two incidents severely crippled Mr. Not long after, Aaron accidentally pushed Mya off the roof of Mr. Peterson became anxious, waiting in the hospital until his wife eventually died in there. However, due to a horrible car accident, his wife had to be hospitalized.
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He once let a younger Nicky see and befriend his son. Peterson was once an amusement park designer and a very friendly family man who lived with his unnamed wife and his children, Mya and Aaron Peterson. He is the main antagonist of Hello Neighbor, Hello Neighbor: Missing Pieces, Hello Neighbor: Walking Nightmare, Hello Neighbor: The Animated Series, and Hello Bendy (a Halloween DLC to Bendy and the Ink Machine), a minor character in Hello Neighbor: Hide and Seek, and the secondary antagonist of Secret Neighbor, Hello Engineer, and Hello Neighbor 2.
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