Freddy appears as a secondary antagonist in the game, being an old animatronic from a past location owned by Fazbear Entertainment. While he is still the titular antagonist, Freddy is far more lax than the other old animatronics and sneaks into the office much more rarely than his brethren. He was intended to be the restaurant's mascot, after Fredbear was removed from the character lineup due to the infamous Bite of '87 (which might be possible). He was retrofitted with a new suit, and however, he was suddenly scrapped for Toy Freddy, after an incident in which 5 children were brutally murdered at the location, as Freddy lacked a connection to criminal profiles to help protect the children. He was moved into the Parts/Services room, now serving the function of spare parts. Another reason for being scrapped was simple: he wasn't considered aesthetically pleasing to a newer generation, the phone guy even going as far as to call him 'ugly'.
On Night 3, however, the children possess the animatronics, thanks to the Puppet, which creates more of a threat for Jeremy, the night guard, as he is already dealing with the malfunctioning toy animatronics, who believe he is a predator. Freddy tends to be the lasted of the withered original animatronics to get up, and, upon entering Jeremy's office, can be deflected by putting on a Freddy mask, making his programming unable to attack Jeremy, due to believing it is merely a Freddy suit. If not deflected, he will attack Jeremy, and stuff him into a suit. Thankfully, he does not.
Freddy is the playable character in the SAVE THEM minigame, following the Puppet to try and stop the Killer. This may be the case of why Freddy was retrofitted in the first place, as, upon being captured, he is destroyed by the Killer.
After each night, Jeremy will have visions in which he is within Freddy. The visions become increasingly disturbing, with Golden Freddy appearing on one night. The visions end when the Puppet suddenly appears in the last vision, stating, "It's me."
When the game ends, it is revealed Freddy Fazbear's Pizza has been closed down in favor of a small budget location, and the toy animatronics have been scrapped, likely due to expenses. Freddy is put back in action, being given a brand new suit, and serving as the location's mascot for 6 years.