Happy Town is a psychedelic looking area within the game. Throughout the area, there are many abstract shapes and strange looking monuments. Many of these things have a tendency to lean towards an upper or downer dream, and several are specifically linked to other areas, either within Happy Town itself, or somewhere else. A small octagonal castle is located in the center of this area with a path lined with trumpeters leading up to it. A train track can also be seen winding throughout the area, complete with a train that comes through a tunnel. Small mazes with knee-high walls are present, one with a spinning question mark and a number of other monuments. The textures in this area are also very peculiar, and each one makes a different strange footstep noise when you walk on it.
- There are several hidden messages written on the ground, many of the tiles are lined up to spell the words HAPPY, SKY, SEX and LSD.
- Some players have reported that The Gray Man appears more often here.
- When exploring Happy Town, various objects can appear right in front of the player without warning, which can be surprising.
- Happy Town is one of the main locations connected to the Natural World via the tunnels.
- When looking at the walls of Happy Town in the Natural World, they appear white and metallic like, much like how they appear on the inside when the Kanji (Logic) textures are active.
- Happy Town is always capitalized in the game's documentation.