Games like Neverending Nightmares
Games like Neverending Nightmares include Outlast, Outlast 2, Mouthwashing, SOMA, and Resident Evil 7 Biohazard. We matched them by the tags players give Neverending Nightmares on Steam (Horror, Psychological Horror, Indie, Gore, and Atmospheric): closest matches first, and among equally close ones the better-known games.

Outlast
Shared: Horror · Psychological Horror · Atmospheric

Outlast 2
Shared: Horror · Psychological Horror · Gore

Mouthwashing
Shared: Horror · Psychological Horror · Atmospheric

SOMA
Shared: Horror · Psychological Horror · Atmospheric

Resident Evil 7 Biohazard
Shared: Horror · Gore · Singleplayer

Amnesia: The Dark Descent
Shared: Horror · Psychological Horror · Gore

Little Nightmares
Shared: Horror · Atmospheric · Singleplayer

Still Wakes the Deep
Shared: Horror · Psychological Horror · Gore

No, I'm not a Human
Shared: Horror · Psychological Horror · Indie

Fran Bow
Shared: Psychological Horror · Horror · Indie

Sally Face - Episode One
Shared: Psychological Horror · Horror · Indie

Layers of Fear (2016)
Shared: Horror · Psychological Horror · Atmospheric

Resident Evil Village
Shared: Horror · Singleplayer · Gore

DISTRAINT: Deluxe Edition
Shared: Psychological Horror · Horror · Indie

Poppy Playtime
Shared: Horror · Singleplayer · Psychological Horror

The Evil Within 2
Shared: Horror · Psychological Horror · Gore

The Beast Inside
Shared: Horror · Psychological Horror · Adventure

Little Nightmares II
Shared: Horror · Psychological Horror · Singleplayer

Tiny Bunny
Shared: Horror · Psychological Horror · Atmospheric

Firework
Shared: Horror · Indie · Psychological Horror

Visage
Shared: Horror · Psychological Horror · Atmospheric

Blair Witch
Shared: Horror · Psychological Horror · Indie

Scorn
Shared: Horror · Gore · Atmospheric

Among the Sleep - Enhanced Edition
Shared: Horror · Indie · Atmospheric