Mary Schmidt, a young girl, is seeing a therapist because she is having nightmares about monstrous versions of RAT and CAT at night. This Fear has taken over her creativity as well, causing her to draw those monsters and little to nothing else. The Therapist concludes that the only way to have Mary get over her nightmares and be child with a normal life again is to directly conquer the monsters.
Mary enters the Dreamscape, where she is assisted by the Origami Cat , which she and her mother made many years ago. It is also "the last memory of her", revealing that her mother died. While the Origami cat is helpful, knocking him off the desc every night will cause him to transform into a monster and haunt Mary forever as revenge, a fake ending ensuing.