The Observatory consists of a small observation room connected to a long hallway. The room is cramped and cluttered with machinery and computer equipment. The hallway is likewise filled with a variety of technical equipment and plushies of the animatronics. The player sits at a desk with a large computer screen, a fan, and the hallway to their right.
The player is tasked with disconnecting the video and audio feeds from each of the five cameras accessed using the computer on the desk. The room is completed when all ten feeds have been disconnected, two for each camera, and disconnecting the feeds actually disables the video/audio features of that camera and can impact the player's ability to monitor the animatronics. Fredbear and Bonnie begin on the main stage on CAM 1 and will make their way towards the player through the hallway to the player's right. The player must check the hallway frequently using the flashlight and hide under the desk if either of the animatronics are there. Failing to do so in time will result in the animatronic jumpscaring the player, causing a game over. The player must also check for Prototype, who will appear on CAM 3. The player must use the camera's light to flash Prototype while it is on the camera to repel it. Prototype cannot be avoided by hiding under the desk. Failing to do this will also result in a jumpscare and a game over.
At the beginning of Observatory Phone Guy will give the following information:
"Hello there. While you are on your way I'll go over the plans from the beginning again, just so that we can do this quickly. Once you get there, go straight to the security room as you were assigned to do by the company. After watching over the cameras for a little bit, start shutting off the cameras and audio system as displayed on the camera system itself. The animatronics in there act as 'security', so if any wander into your office hide underneath the desk, since they shouldn't be able to detect you at that point. However, there is a prototype endoskeleton character or something in the facility, so make sure that you look out for it. It should be light sensitive, so make sure that you can direct a light at it upon seeing it. Alright, I'll go over the rest of the plans once you get far enough. Let's do this."
- Because the player needs to use CAM 3 to watch for Prototype, this should be the last camera to be disconnected.