In Hello Neighbor, the player finds themselves moving into a new house across the street of a mysterious neighbor, Theodore Peterson, who seems to be keeping a secret in his basement. The player's task is to break into the neighbor's home and gather items needed to unlock the elusive basement door. As the player explores their creepy neighbor's house, they must try not to be spotted by Mr. Peterson, or they will be chased down and, if the player is not quick enough to escape, caught. If the player is caught, they are sent back to their own house and will have to break in again.