The Dollhouse is an optional dungeon in Shadow Hearts: Covenant, accessable in the very late portions of the game. It is one of Gepetto's sidequests, therefore the player is forced to have Gepetto as the party leader.
This house once belonged to an renowned puppeteer whose identity Gepetto seems to know. The owner of this house was skilled at making puppets, to the point people said the puppets seemed to live. However, according to the journal found in an upper room of the house, a tragedy claimed the puppeteer's daughter which might leave him mourning for the rest of his life. Desperately, he tried to create a puppet that could take his dead daughter's place and even stumbled over a mysterious crest containing magic. Believing he could be together with his girl once again, he presumably summoned the power of the crest attempting to revive her. The further events remain unknown as the journal stops at that point.