Undead Settlement Dark Souls III Guide

You will face your first enemies as soon as you pass the gate.

Lit the bonfire and head left where you will find Large Soul of a Deserted Corpse next to another tower. Go lower and deal with two dogs at the gate. Move the other direction.

There are two more dogs behind the wagon, and an Alluring Skull next to the body. Not far from here, more to the left, in front of the abyss, there is a Homeward Bone. As you walk among the undead, you can hear one of them. In fact this character is not dead: it's Yoel of Londor (see screenshot). If you hire him, he will travel to the Cleansing Chapel.

Head to the gate and use the lever on the left to open it.

Head to a house on the left where you will face two enemies.

In the hut, on the right, there is a bonfire. Go to the bigger house situated on the left. Watch out for two creatures that will stand in your way. Inside, move the hanging corpse (it will attack you) in order to obtain Small Leather Shield. Enter the balcony and walk around the house. Drop other hanging corpses to obtain Repair Powder (Look out for opponents that can attack with a pitchfork). Head lower and watch out for two hidden enemies. The best option is to go back to the stairs and avoid a shooter that is situated at the very bottom. Collect Charcoal Resin Bundle and exit the building.

A square where a battle will take place.

The fallen body that is situated in front of the building has Loretta's Bone. The whole square is swarming with enemies so don't throw yourself blindly between them. Start by eliminating the group that is closest to the building, and sneak up to the first enemy from behind. Draw the other two monsters away from the bonfire, so that they won't come to close to the rest of your enemies. Only after you deal with them, take care of the remaining two creatures on your left. Just remember to sneak up to one of them and deliver a deadly blow. There is a Soul of an Unknown Traveler under the gate.

Remember: if you have Black Firebombs you can quickly get rid of at least two groups that are situated next to explosive barrels. Just throw the projectile close enough to cause an explosion.

You can sneak up to your opponents.

Now you have to attack the last group of enemies. However, a fat lady will join the fight (so far she was inactive). Deal with all the weaker creatures to fight her one on one. Watch out for series of powerful melee attacks and the moment when she starts reading a tome to prepare a deadly strike (don't let her catch you). After the fight, you will be rewarded with Estus Shard and Ember. Pay attention to the last remaining enemies.

Remember: From here you can move in two directions: into a building that is in front of you that is situated behind the square, or turn right and go via stone bridge. Both paths will lead you to the same place, which is the boss arena. If you want to search the area closely, you can use the first path and then explore the other one.