Harry Mason finds the dagger stabbed into a fridge in the kitchen area of Nowhere, behind the Phaleg door. The fridge is bound by a giant chain; however, the chain is broken due to a missing link, with the two ends of the chain hanging on either side. Harry must first reconnect the chain ends using the Ring of Contract before taking the dagger, which is found in the 2F jewelry store. Harry must use the Dagger of Melchior, along with four other items, on the final door in Alessa Gillespie's room.
Although it is most certainly sturdy, Harry cannot use it as a weapon or even attempt to. The player has access to many powerful melee weapons by this point (namely, the hammer) but the reason for being unable to use the dagger is unknown.
Silent Hill: Book of Memories
- Melchior was the oldest of the three magi who came to King Herod in search of the King of Jews (Jesus). Herod was troubled by this and so asked the three magi to seek the birthplace of Jesus and report back so that he may also worship him. God intervened and advised the magi against this, as King Herod would surely see Jesus slaughtered. The Dagger of Melchior could have connections regarding this, and that if God's advice was ignored then the events that led to Jesus's birth would not have happened; this may have further connections to the Ring of Contract.
- Should Harry try to take the dagger without repairing the chain, a monster known as the Bloodsucker will grab and instantly kill him, meaning that Harry must have the ring to progress.
- The dagger may be the same dagger Claudia Wolf is seen with near the end of Silent Hill 3, albeit a little less rusty and more polished.