
Chapter 1 of Resident Evil 4 Remake ended on a rather serious note. The man in the hat and trench coat has done something nasty to us, although we do not yet know what it means (unless you played the original, in which case you probably do). Either way, we now need to find a way out of this mess. Once you regain control of Leon, follow the only available path until you pick up a Kitchen Knife.
After the knife tutorial, continue along the corridor and approach the stairs, crouching before climbing them. This will allow you to catch the enemy by surprise and stab him for an instant kill. After dealing with that enemy, it is time to learn how to parry. This essentially involves pressing the contextual button (L1 on PS4 and PS5) just before an enemy attack lands to deflect it and create an opportunity for a follow-up attack.
Do not kill the rats. We will do that in a moment, but we do not want to get ahead of ourselves. They will still count if you kill them now, but come on, damn it, you are following my guide, SO LISTEN TO ME. Jump through the window in the northern corner to reach a corridor where you can continue. After eliminating another creature and passing through one more door, find the crank on the wall and turn it.
This opens the gate leading to your confiscated gear (and some more knives, incidentally), but you must return quickly because it closes after a short time. There is another locked drawer, whose location will be automatically marked as usual. Open the door and continue through the double doors. You will now meet the Merchant. If you have been following the guide, you can hand in the first set of Blue Medallions.
We recommend buying the Treasure Map: Village and the Case Upgrade (7x12). You should notice that you left a treasure in one of the previous rooms. It is a Sapphire that you can inlay into the Flagon from earlier. With two different gemstones inlaid, it will be worth 12,100 pesetas, roughly 1,000 more than you would receive by selling the Flagon, Sapphire and Ruby separately. You should also complete the Pest Control request, which will allow you to acquire the Punisher, a better handgun than your current weapon that will remain useful for quite some time.
Continue southeast until you spot a path with an enemy. After climbing the stairs, you will reach a mountainside shanty area containing several dozen enemies to defeat. Watch out for the dynamite throwers, as usual. You will know the area is safe when the music stops.
Once the area is clear, the map should show a treasure in the northern section. It is a Ruby. Right beside it is a crank that will allow you to return to the Merchant, but do not use it yet. Before doing so, you need to obtain an item from the tower on the roof of the house in the southern part of the area. Simply make your way over there, climb the ladder and collect the Hexagonal Emblem.
On the ground floor, on the eastern side, you will find a Small Key. You can use it to open the locked drawer west-southwest of the Merchant and obtain an Elegant Mask. To continue, you must insert the emblem into the mechanism on the locked gate. Position the eagle upside down, with its beak pointing to the right, then flip the emblem over and insert it.
You will enter another area with enemies. After defeating a couple of them, follow the treasure map to a chest containing another Sapphire. You will need to crawl underneath some crates to reach it. Continue northwest and climb the stairs until you reach a larger area. Inside the shed on the western side, you will find a note, a herb and Clockwork Castellan #02.
As you move a little farther ahead, several enemies will appear, including Dr. Salvador, the chainsaw-wielding enemy. If you manage to defeat him, you will receive an Emerald. As for the treasures marked on the map, look above the corresponding icons to spot some metal lanterns. Shoot them down to collect a Sapphire and a Pearl Pendant. Before shooting down the latter, you must break the support holding up the well cover so that it closes and prevents the pendant from falling into the muck.
Continue north until you reach a house. You must enter through the northeastern side. In the southwestern corner, you will find a Small Key. There is also a Ruby inside a drawer in the northern corridor.
In the lower-right corner, you will find a locked cabinet that requires a combination. To open it, select the crop, pig and baby symbols. Inside, you will find the Crystal Marble, which is used to unlock the upstairs door. Once you insert it, rotate the marble until it forms the image shown below: the village's symbol.
Once inside the room, you can find a file and the Insignia Key inside a drawer. This brings you to Chapter 3.