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The Frightmare Asylum attraction is set in a hospital-like environment, specifically designed to evoke the atmosphere of an abandoned and haunted asylum. This setting is characterized by its dilapidated and eerie appearance, complete with horror displays that often involve doctors and deranged patients. The theme revolves around fear and horror, playing on common phobias and the unsettling ambiance of a mental institution. The attraction is known for its intense and immersive experience, utilizing scare actors and special effects to enhance the terrifying atmosphere.