Kline's Nightmare is much like the woodsman himself; cold and dangerous. All the floors outside are frozen, causing Alundra to slip and slide constantly, meaning that normally simple hazards become harder to avoid. The majority of outdoor areas are focused on this aspect, with a maze of small stones littered with small spiked balls, as well as narrow passageways and slopes that Alundra will slide down.
The indoor sections are divided into four areas, three of which contain keys which provide access to the central tower. One of the towers focuses on conveyor tiles, requiring much fore-planning and close examination to complete. Another deals with ice pillars, once again requiring great fore-planning to succeed. A third area is modelled much like a chapel, dedicated to an unknown god. The final area is a large pit, with a chest containing a key in the centre. From here, the path back up is littered with moving spiked balls in a disorienting spiral path.
At the peak of the final tower, Alundra finds Kline, who is being attacked by the Soul Leech. After Alundra defeats the Soul Leech while protecting Kline, but failing to destroy it, Alundra is called out of the nightmare. Kline then awakens and transforms into a werewolf, fulfilling Sybill's prophecy. Alundra faces off against Kline, now completely controlled by the nightmare, and is forced to kill him to free him from it.
- One of the ice pillar puzzles in this dungeon, involving eight pillars, is notorious for its difficulty, especially considering the relative earliness of the dungeon. So many players found it difficult that the developers of the game actually released the solution themselves.
|Alundra – Meia|
|Beaumont – Bergus – Bonaire – Elene – Fein – Giles – Gustav – Jess – Kisha – Kline – Lutas – Meade – Myra|
Nadia – Naomi – Nestus – Phineas – Rumi – Septimus – Sierra – Sybill – Talis – Thyea – Wendell – Yuri – Yustel
|Berue – Cephas – Jaylen – Jeal – Keysmith – King Miming – King Snow – Kōhei – Lars – Lurvy – Lyman|
Melzas – Merrick – Nava – Nirude – Olen – Ronan – Stenia – Uma – Vul – Wilda – Zane – Zazan – Zorgia
|The Klark – Inoa Village – Tarn's Manor – Coal Mine – Lars' Crypt – Despair Desert – Ancient Shrine|
Coastal Cave – Reptile Lair – Magyscar – Sanctuary – Underground Waterway – Nirude's Lair
Fairy Pond – Murgg Woods – Tower of the Great Tree – Torla Mountain – Nava's Keep – Lake Shrine
|Crest – Dreamwalker – Gilded Falcon – Gazeck – Guardians of the Seal|
Life Vessel – Magic Seed – Murgg – Teleport Arch – Zolist
|Enemies – Equipment – Items|