Resident Evil 7 Biohazard Resident Evil 7: Biohazard - Walkthrough (Madhouse Difficulty)

This guide will cover some tips and strategies to survive Madhouse mode. I'm recommending that you at least beat the main game on Normal first to get the Albert-01R Handgun to make things even easier.

And always make room for some Enhanced Handgun Ammo + Neuro Rounds! Those two things will help you a lot during some boss fights. And I always rely on them whenever I encounter the Fat Molded.

Walkthrough Part #1 - Guest House & Main House

Tips for surviving Guest House (Mia Boss Battle) and Main House:

Stay AWAY from Mia! Make use of the doors and attack her as soon as she's done cutting the doors. if she's about to charge-run with her chainsaw, use guard button (Spacebar). Ethan will hold her chainsaw and kick her away, taking no damage and give you time to run.
ALWAYS Aim for the head. It will take her down much faster (otherwise, you'll have to resort to axe like I did in the video. Which, in this difficulty is a very bad idea :3)
Once you've reached the Mainhouse (after the disgusting dinner scene) things will get a little more stealthy. Make a great use of stealth in this section. Trust me, you WON'T survive Jack for very long in this difficulty if you decide to just make a run for the hatch key. If spotted, run and if he caught you and turn your body around quickly tap on the guard button and keep on pressing the backward key. (Walk back) if you get hit, you won't take much damage and if you are lucky, you won't even take any damage (see 35:24). And don't forget always close the door behind you!

Walkthrough Part #2 - Mainhouse, Processing Area, Yard

Tips for surviving Main House And Processing Area:

In dealing with Jack around the Main House Area (1F or 2F) the strategy is pretty much the same. Play slow, listen to his footsteps and taunts to determine his exact location before making your moves.
Make great use of the Scorpion Door on the 1F and Save Room! Jack CANNOT see or follow you through these 2 doors.
Once you've reached the main hall for the first time (After opening the gate with Ox Stattuete), you should have 4 Antique Coins in your inventory and you should see 3 bird cages in the central table. Use the 3 coins on the cage containing the Scorpion Key and immediately head to a nearby Scorpion Door Key. Now this key will make you be able to skip the nearby shadow stattuete puzzle and also gives you an early access to broken shotgun in the second floor Scorpion Door.
In dealing with the Molded, make sure you always keep your distance, shoot the head, and always run away backward after each shot to gives you more distance. Thats because they'll always charge attack you everytime you hit em in the head. 4-5 well placed shots should take em out.
In dealing with the 4 legged Molded, please refer to 10:50, 24:33, and 28:55 for their exact location. Be VERY careful when dealing with them because they're extremely fast and can usually take you out in 1 hit if your health is on yellow. Luckily they have low HP. Duck, move slowly, and always aim for the head for 1 shot kill. If you happened to alert them of their position, wait for the exact time they stop moving before they hit you and shoot their heads off. You can also try to knock them back first with the Shotgun or Albert-01 first before aiming for their head.
In dealing with Jack boss battle, use the Enhanced Handgun Ammo on Jack 3 times in the head at least to make him retreat to his scisscors chainsaw. After that keep kicking the body bag on him to give you time to take your own chainsaw. (Or, you can go together with Jack in retrieving your own Chainsaw. He won't attack you) From this point on, you can just happy trigger with the chainsaw (Don't forget to press reload if the chainsaw stops working). Don't forget to guard too eveytime he swings his chainsaw while you're attacking him. This boss fight is actually pretty easy and fun if you do it right.
If you're confident enough, you can choose to head to the processing area and fight then kill Jack off first. But be aware that you'll be encountering a lot of molded on the way to the fight and you'll missed a lot of ammos and meds to help you out in the fight. But it does make your job easier when you have to search for the remaining Dog Heads statue in the main house area.
I suggest you immediately use the antique coins on the cage once you found them regardless you need the item inside of it or not to help free inventory space.

Walkthrough Part #3 - Old House & Green House

Be wary when entering the Old House. If you see a bee hive, immediately get out of that room and close the door behind you. Bees can follow you through rooms and you don't want them to sting you all the way through.
Once you get your hands on the Burner, I suggest you fire in burst. For me personally, it will prevent you from over shooting it. Especially when dealing with the bee swarms or hive.
In dealing with Marguerite around the Old House, before triggering her appareance, make sure you first exit through the door that leads to the Old House entrace. This will make this door filled with spiders and you can exit from the other door on the back of the living room. This way you can avoid taking the longer way around through the guest room and can also avoid 2 moldeds that usually spawn near the old house entrance. Just make sure you open the door to the dining room halfway through and make sure Marguerite to peek Marguerite's position. If you're spotted, you can always return to this living room and close the door. You can make a run straight to the Gallery once Marguerite is on and facing to the back of the dining room. And always close the door behind you while you're doing it., remember that.
You can use the same strategy to return to the deck outside of the dining room, or go around to the guest room to pickup some burner fuel. It's your call.
Second encounter with Marguerite in front of the Crow Key Door, you can use the burner to stun her quickly. But in my experience, you can combine the burner's firepower with a few well placed shot of Enhanced Handgun Ammo. She'll go down quickly.
In the third encounter, you can spam some burner or flame rounds to her. But always make sure to aim for the nest like thing under her belly. She'll go down much faster. And if you choose to spam some burner on close range, always be ready to block.

Walkthrough Part #4 - Main House & Testing Area

Not much dangers in this section in my opinion. Just try your best to avoid the molded around the house. But I always kill the two on the main hall near the exit to the Yard.
There are 8 4 legged moldeds in this section. The locations are 2:53, 2 at once at 10:18, 2:30, 2 at once at 2:58, 40:48, and lastly 41:06. You can snipe the 2 at 10:18 from the porch for a safer distance. As for the 2 at 2:58, I can never face them directly if there are 2 of em directly coming at way. So I just run back the party room entrace and wait them to dissolve. When I re enter the area, they will appear one by one in some random locations around the barn.
In dealing with the Fat Moldeds, use the Neuro Rounds first to slow them down. And headshot them with the Enhanced Handgun Ammo. A few headshots will take em down much quicker. If you don't have any Neuro Rounds or Enhanced Ammo left, just keep your distance and aim for the head. They will surpisingly go down much faster rather than using the flame rounds.
Lastly, avoid Lucas's tripwires and exploding boxes. AT ALL COST. If you're not sure which box is explosives and you want to get some items, don't be afraid to shoot it. Using the psychostimulants can also help to determine which from which.

Walkthrough Part #5 - Boat House & Wrecked Ship

Jack's mutated form can be a real challenge. But if you move quickly and never stop too long at one place, you can easily avoid him. Just watch out for that acid spit though. Oh, and always block immediately after the fight started. His first attack could really drain your health and almost undodgeable.
When he pinned you down after you destroyed all of his eyes, time it correctly between your shots and your block. But be sure you pack some enhanced handgun ammo or always use shotguns. If you block his attacks for too long, he'll eventually kill you.
There are 4 4 legged moldeds in the wrecked ship section. The locations are: 2 guarding 2 hallways at the 1F, 1 at around 48:30 (You can skip this if you go through the door behind you after dropping down to the control room), 1 at 1:00:57
In dealing with the 2 fat molded at the 2F hallway, be stealthy! If you're spotted, you can retreat to the nearby save room to make them dissolve. Be wary though that they (but not always) respawn in front of the the stairwell door and in front of the dark room (The room next to the bunk room, next to the little safe that needs a corosive to open it). You can also make them dissolve by going to the dark room or the lounge (the room with the painting puzzle). But be aware that they will instantly respawn once you leave those rooms. So plan your move carefully.
In dealing with the fat molded at the 3F just before you take the Cable, Immediately set a remote bomb in the shower room entrance to the Cable room and detonate it right in his feet. Then fallback to the hallway leading to the Control room. At this distance, ready your Albert-01R with the enhanced ammo and place some bullets to his head. Be aware there are a few of his minions too.
There's one more fat molded at the 2S level. You can take him down easily with some well placed remote bombs and some enhanced ammo to the head. But if you're confident enough, you can place on remote bombs, detonate, and run like hell to the double doors upstairs. Close the door and you're good to go.

Walkthrough Part #6 - Salt Mine & Old House

The real danger in this section is the cave part where you'll fight a lot of moldeds, 2 4 legged moldeds, and 3 fat moldeds. So make sure you have some Shotgun Shells, Neuro Rounds, and some enhanced HG Ammo to make your job easier.
There are 2 more 4 legged moldeds in the salt mine area. The locations are 3:52 and 5:28.
At around 4:29, you'll encounter 2 moldeds. There are also at least 3 tripwires in this area. Don't waste your bullets on them. Lure them into each of these tripwires. If you're lucky, you won't even have to fire a single shot.
Reaching the cave part, I suggest you dispatch all of the molded using the SG with headshots. That'll make your journey to the top a lot easier. Don't worry if you have to go slow.
Once you've reached the top, you'll encouter 1 fat molded. Don't waste your bullets. Just use one neuro rounds to stun him and run away quickly.
Reaching the last area of the cave, you'll encounter 2 fat moldeds. Same strategy as always. Neuro Rounds, and then spam some headshots with the Enhanced HG Ammo. You may need two Neuro Rounds in this encounter cause the bigger one tend to shake off the rounds effects much quicker. Next Be careful as you ascend the ladder. There are at least 3 tripwires.
Before the cave area, make room for Machine Gun and it's ammo. For some reasons, I found it easier to fight Eveline with the Machine Gun. Tried with the HG and SG and I always get eaten at the last part.

Source: https://gameplay.tips/guides/332-resident-evil-7-biohazard.html

Resident Evil 7: Biohazard - Walkthrough (Madhouse Difficulty)