This research aimed to demonstrate the effects of an avatar's emotional expressions on players' fear reactions during horror gameplay. In Study 1, we found that the emotional expressions of an avatar decreased fear reactions among players. This effect was mediated by avatar embodiment. More precisely, avatar emotional expressions lower avatar embodiment, which, in turn, positively predicts players' fear reactions. In Study 2, we replicated the findings of Study 1. In addition, we found that the effects observed in Study 1 were only present in interactive gameplay - not when players watched screencaptured footage of the game. In other words, we found evidence of a moderated mediation model in which interactivity moderates the effects of an avatar's emotional expressions on players' fear reactions through avatar embodiment.