The Midnight Zone appears when Crush drops off Dory, Nemo, and Marlin to this location to help Dory find her missing parents. Upon arriving, Dory yells out her mother and father's names in which several nearby crabs shush at Dory as the three fish swim along. This sparkles a flashback where Dory as a small fish tries to ask someone to know if her parents named Charlie and Jenny are at this area and the crabs shush at her in which Dory starts to remember her parents' names in which Dory then swims around the area in an attempt to find her parents while Marlin keeps warning her about this area and upon stopping, behind them is a hostile giant squid which emerges from the crate in the midnight zone showing its bioluminescence. As the squid chases the three fish, it suddenly gets caught in one of the crates and grabs Nemo with one of its tentacles and attempts to eat him with its fearsome beak in which the squid is suddenly crushed in which the three suddenly arrive to the kelp forest of Morro Bay.
This location appears again during the credits where Hank appears inside the crate where the giant squid is at and then suddenly spreads a jet of ink to escape from the giant squid.