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The town where many left wordless by the heartless go to. It is bustling, and many characters, such as Sid, Huey, Dewy, and Luey, and the All important Squall, Aeris, and Yuffie, as well as Donald and Goofy, appear here for the very first time.

Twilight Town is split into two parts, the shopping district and the residential district, with a train and underground tunnel system that connects the two. There are plenty of stores here, including an accessory shop, as well as lots of houses lined up. Within the world of Twilight Town is also the Tower, the residence of Yen Sid and Flora, Fauna, and Merryweather. Both Twilight Town and Yen Sid's Tower are other worlds to be found between light and darkness. Twilight Town holds the perfect balance between the two realms, while Yen Sid's Tower is more closely tied to the realm of light than any of the known worlds on this in between plane.