The Axe is a powerful, one-time use melee weapon in The Evil Within and The Assignment. It can kill regular Haunted and doppelgängers in one strike, but not for the Fat Haunted. It can most commonly be found after being dropped by dead Haunted. It can also be found lying around in various areas across the game world.
This weapon is also commonly used by the Haunted against the player, causing moderate damage to Sebastian if hit. Only one can be carried at one time, and there is no inventory slot for it.
In The Assignment, the axe is the only mean of defense, as no firearms are present in the DLC. Like in the main game, the axe has a one time use, but can only be used when sneaking up on an enemy, similar to the knife. Also, Kidman can throw a bottle at a Haunted's head and use the Axe to sneak kill them from any direction.