Games like Shards of Dread
Games like Shards of Dread include MiSide, Escape the Backrooms, Layers of Fear (2016), Bad Parenting 1: Mr. Red Face, and Outlast. We matched them by the tags players give Shards of Dread on Steam (Adventure, Psychological Horror, Walking Simulator, Horror, and 1990's): closest matches first, and among equally close ones the better-known games.

MiSide
Shared: Psychological Horror · Horror · First-Person

Escape the Backrooms
Shared: Horror · Psychological Horror · Adventure

Layers of Fear (2016)
Shared: Psychological Horror · Horror · Walking Simulator

Bad Parenting 1: Mr. Red Face
Shared: Adventure · Psychological Horror · Horror

Outlast
Shared: Horror · Psychological Horror · First-Person

Fears to Fathom - Woodbury Getaway
Shared: Adventure · Psychological Horror · Horror

SILENT HILL: Townfall
Shared: Adventure · Horror · Psychological Horror

The Park®
Shared: Psychological Horror · Horror · Walking Simulator

Garten of Banban
Shared: Horror · Psychological Horror · First-Person

Blair Witch
Shared: Adventure · Psychological Horror · Horror

KARMA: The Dark World
Shared: Psychological Horror · Walking Simulator · Horror

Poppy Playtime
Shared: Horror · Psychological Horror · Singleplayer

Firewatch
Shared: Adventure · Walking Simulator · First-Person

Still Wakes the Deep
Shared: Psychological Horror · Horror · Walking Simulator

Mouthwashing
Shared: Psychological Horror · Horror · Walking Simulator

The Cabin Factory
Shared: Psychological Horror · Horror · Walking Simulator

SILENT HILL 2
Shared: Psychological Horror · Horror · Psychological

The Exit 8
Shared: Walking Simulator · Horror · Psychological Horror

The Beast Inside
Shared: Adventure · Horror · Psychological Horror

Buckshot Roulette
Shared: Horror · First-Person · Psychological

Visage
Shared: Psychological Horror · Horror · Adventure

Amnesia: A Machine For Pigs
Shared: Walking Simulator · Horror · Psychological Horror

Fears to Fathom® - Scratch Creek
Shared: Horror · Psychological Horror · Adventure

Millennium Dream
Shared: Adventure · Walking Simulator · Psychological Horror