Although this takes place after Mike and Sam's segment, it is played first. After opening with the final hallucination of Dr. Hill, Josh is eventually left alone on the cavern floor.
The voices of his sisters start to sing Frère Jacques. Josh begins to scream and panic, as eventually more voices - Dr. Hill's, The Psycho's, Chris', Mike's, Ashley's and, in the remake, Sam's - begin to fill his head.
He begins to calm himself down, and for the first time in the game, becomes playable. The most you can do in this section is move around the constricted area and let the scenes play out in front of you.
Josh will begin to have harsh and vivid hallucinations about his decayed sisters, as they blame him for leaving them to die. There is one QTE you have to hit, that will punch off a pig's head - symbolizing the pigs that Josh had to kill in order to commit to his prank. At the end of this section, Josh will see a huge Wendigo head come down and screech in his face.