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Ghost Town is the third stage of Sonic Forces and the introductory stage for Classic Sonic. It's a completely new stage, set in the same city featured in the second cutscene of the game, now totally destroyed, ablaze and terrified by the Eggman Empire's domination.
In terms of plot, after the formation of the Resistance, Tails feels lost without the presence of Sonic and then leaves the group. In the chaos of the city, Tails finds E-123 Omega and tries to repair him, not realizing that he is being observed by Chaos who tries to attack him, making the fox cower in fear and call for Sonic's help. Nevertheless, the God of Destruction is stopped when Classic Sonic arrives via interdimensional portal and jumps on his head. Tails imagines that he was saved by Sonic, but soon realizes that it is actually his version from another dimension.
Ghost Town shows a scenario of complete chaos and war in the background, with structures, buildings, houses, among others being destroyed by hordes of Death Egg Robots and other Eggman Empire robots. Overall, the city's structure has influences from some real cities like San Diego. It also features an underground section in the sewers and the bottom mountains and hills of Green Hill; plus it is a coastal region.