The Torch is a makeshift light source that appears in Until Dawn. It is created and used by Emily while exploring the mines. A second torch is used by Mike while he wanders around the Sanatorium in Chapter 9.
After landing on a mine ledge, after the fall of the fire tower, Emily uses her shirt to wrap around a wooden stick, dips it in oil, and then lights it up. Emily momentarily loses the torch after the ladder breaks, but she acquires it soon after.
While being chased by The Stranger, she may use the torch to light a barrel of oil on fire.
If Emily decided to not use the torch to light up the barrel, she will either lose it while on the bridge and runs away from the Wendigos (if the player misses some QTEs), or she will use the torch, instead of the Flare, to light up another barrel of oil.
After dropping down, Mike will find and light up a torch found in a closed off area. He will use this torch as he wanders through the Sanatorium, but loses it after it burns out when being chased by a Wendigo.
Weapons and Items