Chapter 3 takes place in the Sector 7 Slums and gives players their very first taste of the side quests on offer in Final Fantasy VII Remake. There are six of them in total, with most of them centered around combat. You'll have access to the first four straight away, but the other two won't become available until you've completed the Rat Problem and Nuisance in the Factory quests.
Completing all six will lead to a special cutscene between Cloud and Tifa, during which you'll be able to choose her outfit for a later section of the game, albeit indirectly. You'll also need to complete them all if you're hoping to unlock the Best in the Business trophy, which requires players to complete all of the game's 26 side quests.
6 Chadley's Report
Chadley is a Shinra scientist who can be found hanging around in front of the Beginner's Hall. He'll ask Cloud to complete a number of tasks to aid him with his research and, ultimately, to develop new Materia. There are 20 battle intel reports in total, most of which you'll be completing naturally as you make your way through the game. Completing them is entirely optional, although it's definitely something worth doing as some of the Materia he creates are incredibly useful.
To complete the side quest, you'll need to equip the Assess Materia that he gives you and use it to scan two different enemy types. Head over to Scrap Boulevard and you'll soon run into some Gorgers and Wererats, so simply select Assess from your list of abilities and scan one of each of them. Return to Chadley once you're done and he'll give you 500 gil as a reward.
5 Lost Friends
In order to begin the Lost Friends quest, you'll first need to speak to Betty. She's the little girl hanging around near the playground and is having some trouble tracking down her cats. Of course, she'd like Cloud and Tifa to help her find them. This probably wasn't the kind of mercenary work that Cloud had in mind, but what can you do?
You'll need to find three cats in total and can do so in any order that you like. If you talk to Betty some more, she'll mention that Marlene sometimes feeds the cats. With this in mind, make your way over to Seventh Heaven and you'll find one of the cats just outside the door. Interact with it and it will run away.
Next, follow the road around towards the station and you'll soon arrive at a T-junction. There are quite a few people hanging around in this area and so you'll probably hear the cat before you see it. Look around a bit and you'll find it directly opposite the side street. Be sure to interact with it and then prepare to track down the final cat.
This one's a bit more out of the way, but, thankfully, the game makes it fairly easy to find. Make your way past the item shop being sure to take the lower path (not the one that leads up towards Tifa's apartment) and you'll see a woman with a quest marker standing opposite a metal pipe. Speak with her and she'll call through to one of the cats on the other side. Crawl through the pipe and interact with the white one to send it scurrying away.
After finding all three cats you'll get a prompt asking if you want to return to Betty. Click 'yes' or make your own way there whenever you're ready. Just as Cloud delivers the bad news, all three cats turn up and Betty rewards Cloud with a Maiden's Kiss.
4 Nuisance In The Factory
Speak with the Junk Dealer to begin the quest and then make your way over to the abandoned Talagger factory. Upon arrival, one of the guards will recognize Tifa and ask her and Cloud to take out two groups of monsters that have infested the factory. You'll be up against Lesser Drakes (wind) and Gorgers (ice) so be sure to have the right Materia to exploit their weaknesses equipped.
Make your way around the factory clearing enemies as you see them and you'll eventually arrive at a warehouse with two Lesser Drakes. Hit them with Aero when they're flying high and move in for some physical attacks whenever they drop down. It's possible to jump up and attack them, but casting Aero is generally more effective.
After you've taken care of everything, you'll get a prompt asking whether you want to return to the Junk Dealer. When you do, he'll give you 500 gil as a way of saying thanks and tell you about another monster that's been sighted at the factory. This unlocks the Just Flew in from the Graveyard quest.
3 Rat Problem
Speak with the Item Store owner and he'll tell you that he's been having some problems with Doomrats and Wererats and would like Cloud to take care of them. Take a right as you leave the item shop and then a left shortly after. You'll run up some stairs and through a large metal tunnel with an exit directly in front of you.
On the other side of this exit is a pack of Wererats. They're weak to ice attacks, but they're also fairly weak in general meaning that you should be able to hack and slash your way through them pretty quickly. Once you're finished, head back to the Item Store and the owner will point out that you still haven't taken care of the Doomrats.
Return to the same place where you fought the Wererats and this time you'll find a couple of Doomrats waiting for you. They're a bit more challenging, but again shouldn't give you too much trouble — especially if you hit them with Blizzard. Once you're done, return to the Item Store once more to receive your reward of five High-Potions. You'll also unlock the On the Prowl quest.
2 Just Flew In From The Graveyard
Head back to the abandoned factory and speak to Gwen, the woman dressed in black. She'll tell the party about a Cerulean Drake that's made its way into the factory. In order to gain access to the part of the factory that it's hiding in though, you'll first need to get your hands on a security key by smashing crates.
To find the key, follow the path around and exit the first warehouse through the small side door on the right. Take a right immediately afterward and then follow the path around into another warehouse. There's a pack of Gorgers waiting for you here. After defeating them, leave the warehouse from the exit on the right.
Follow the path under a bridge and then take a left immediately afterward to reach yet another warehouse. After defeating one more pack of gorgers, exit the warehouse on the other side and you'll find three wooden crates on your left. The security key is inside one of them, so slash them with your sword to obtain it.
With the key now in your possession, turn around and head back into the warehouse that you just left. This time though, head up the metal stairs and follow the path around to the place where you fought the Lesser Drakes earlier on. There'll be another pack of Gorgers waiting for you, but once they're gone you should see a security door that you can interact with. Head through it and you'll come face to face with the Cerulean Drake.
As with the Lesser Drakes, it's weak to Aero, so be sure to have wind Materia equipped on either Cloud or Tifa and hit it with physical attacks whenever it drops down low. After you've taken care of it, return to Gwen and, following a frosty exchange, she'll give you a Star Bracelet.
1 On The Prowl
Before you can tackle this quest, you'll first need to have completed the Rat Problem quest for the Item Store owner. If you've already done so, head over to the Beginners Hall and speak to Wymer. He'll ask you to return to Scrap Boulevard and take care of a feral dog that's been causing trouble.
Explore the Boulevard a little and you'll soon encounter a white Wrath Hound. It's weak to ice attacks, but unless it's staggered you'll probably miss due to the mutt's high speed. Instead, focus on physical attacks making sure to hit it with your abilities whenever your ATB gages allow.
Once you've dealt enough damage the hound will eventually flee, so head after it and you'll run into Wymer. He's somehow managed to trap the hound in an enclosed area, so make your way in there and pick up right where you left off. Once everything's been taken care of, return to Wymer and he'll reward you with an Elixir.