Which alternative film is set mainly in the fictional town of Twin Peaks?

The alternative film set mainly in the fictional town of Twin Peaks is Twin Peaks: Fire Walk with Me. David Lynch directed the 1992 film as a prequel to the television series Twin Peaks.

The story follows Laura Palmer during the final days before her murder, an event that forms the central mystery of the television series. Sheryl Lee plays Laura, while Kyle MacLachlan returns as FBI Special Agent Dale Cooper. The film explores supernatural forces, family abuse, trauma, and the strange mythology surrounding the town.

Twin Peaks: Fire Walk with Me received a divided response when it premiered at Cannes, but its reputation improved considerably over time. In 2014, deleted and extended scenes were assembled as The Missing Pieces. The film is now often considered an important part of Lynch's larger Twin Peaks narrative.