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October 8, 2025: We updated this guide as Alan Wake 2 is included in the PlayStation Plus Monthly Games for October 2025.
Alan Wake 2 inventory upgrades are something you'll feel the need for early in the story, though you might not find out about this possibility for a while. That's because the ability to increase inventory space is hidden behind optional puzzles, without much of a clue provided about where you need to look for them. As Alan Wake 2 falls into the survival horror category, inventory management is a trope that players have to contend with, balancing weapons, ammo, and health items in what limited space you have available.
Saga Anderson's inventory upgrades
Inventory upgrade one
Chapter: RETURN 2: The Heart
Location: Cauldron Lake General Store
The first inventory upgrade for Saga Anderson can be requisitioned when you return to Cauldron Lake in the second chapter. Your primary mission is to locate Agent Nightingale's missing heart, a goal which will take you into the Cauldron Lake General Store near the murder site. Once you've defeated the first Taken, check the back room to find the satchel on a filing cabinet. This area also has one of the unlockable Alan Wake 2 weapons too, but you'll need the shotgun padlock code to access it.
Inventory upgrade two
Chapter: RETURN 2: The Heart
Location: Cauldron Lake coast
Once you've survived the first Overlap as Saga Anderson you'll be thrown out to the Cauldron Lake coastline. You'll find that the flooding has receded, allowing you to explore previously unreachable areas. You're going to want to follow the coastal path going east, keeping an eye on felled trees along the beach. Eventually you'll be able to crawl under one and find a Cult Stash – accessing it is as easy as following the color code combination which flashes on screen.
Inventory upgrade three
Chapter: RETURN 5: Old Gods
Location: Bright Falls Fresh Seafood
After you've completed the incident at the Valhalla Nursing Home you'll return to Bright Falls with the Alan Wake 2 bolt cutters in hand. Over the road from the Oh Dear Diner is a rundown Fresh Seafood building. Open the gate with the bolt cutters and head into the first shack on the right, which is where you'll find a Cult Stash. There's a puzzle here which asks you to look at the rising sea tides to get the code, but 6-9-7 should save you the hassle.
Inventory upgrade four
Chapter: TBC
Location: TBC
I'm still searching for the final inventory upgrade for Saga Anderson, but once I locate it I will be sure to upgrade this guide with the final details. It is possible to complete the game with just five rows available – that's how I had to wrap my Alan Wake 2 review up in the end – but given how space hungry the Crossbow, Hunting Rifle, and Pump-Action Shotgun are I'd certainly like the additional space – especially ahead of the incoming Alan Wake 2 nightmare difficulty mode.
Alan Wake's inventory upgrade
Chapter: INITIATION 5: Room 665
Location: Oceanview Hotel Ballroom
There's only one inventory upgrade available for Alan Wake. The writer starts with three rows available and the fourth is unlocked easily enough, so long as you're able to access the Oceanview Hotel. Once you're in there, head up to the Ballroom on floor two and shine your flashlight on the Word of Power above the bar. This will let you allocate a Words of Stuff ability point, and you'll want to invest this in the Magic Pocket perk.
If you're in need of some extra help, be sure to check out my top Alan Wake 2 tips.
