Nightmare is the only one animatronic who does not have a jumpscare in the Extras Menu.Its possible that Nightmare is a personification of Death, meaning that the Fredbear-type appearance is only a simplified form and that his true form is incomprehensible.Said protagonist is William Afton, and Shadow Freddy himself is already linked to Afton. He calls himself the "wickedness made of flesh" of the protagonist of Ultimate Custom Night.This implies that Nightmare isn't a nightmarish representation of Shadow Freddy like the other Nightmare animatronics are to their real counterparts, but simply Shadow Freddy when he enters dreams.In "Hide and Seek", the third story in the sixth book in the Fazbear Frights series, Shadow Bonnie is the antagonist and appears in the protagonist's dream as a monster with sharp teeth and claws.Nightmare is outright called "Shadow Freddy" in the game files.Nightmare and Shadow Freddy have been heavily implied to be the same entity throughout the story.However, there are only hints to Nightmare's presence in the book. Nightmare appears on the cover of The Twisted Ones sequel to The Silver Eyes novel. The player must close the right door to send Nightmare back into the darkness. He is invisible to the player and approaches the right door, with only his eyes indicating his presence.
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Nightmare appears in the Ultimate Custom Night update alongside most of his fellow nightmare animatronics. He is acknowledged in the gallery as a separate entity from Nightmare Fredbear, meaning that he must have some sort of significance. His existence is unexplained, and his purpose is unknown. Upon being attacked by him, he will appear in a screen similar to Golden Freddy instead of a complete animation. Also, he always directly appears at the doorway. He must be handled the same way, but Nightmare is more aggressive than Fredbear. Just like Fredbear on Night 6, on Night 7 and Night 8, he takes the same role, appearing at 4 AM, and replacing all animatronics, taking up their duties. He is black with a yellow hat and bow tie, the yellow hat having a black trim on it. However, it's just his endoskeleton's head. Upon closer examination, a black mass seems to reside in Nightmare's head.
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Unlike Fredbear, his skin is translucent, exposing all of his animatronic parts. Nightmare is clearly based on Nightmare Fredbear, being some sort of demonic version of the already demonic looking Fredbear.