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The Haniwa Temple (遺跡, Iseki, Ruins) is an area accessible from Sign World by interacting with the collection of grey stones near the pyramid.
When you first arrive at this area, you will be on a grassy path with rock sculptures and cave people in the background. When you travel right, you will come across various small haniwas in your way. Interacting with them will cause them to melt out of your way.The next part of this area is a large staircase, similar to the one leading up to the Sky Garden in Yume Nikki. At the top of the staircase is a room with a grey moving haniwa with a smaller immobile one near it, obstructing another area. Interact with the moving haniwa to get the Haniwa effect. Equip this effect to move the smaller haniwa out of the way. When you go up to the doorway at the end of the path, you will witness the Haniwa Dance Event.