If you're looking for great examples of practical effects in horror, a couple of classics immediately come to mind, along with some underrated gems.
First up, you can't go wrong with John Carpenter's
The Thing (1982). The grotesque alien transformations and effects created by Rob Bottin are
legendary. Every creature and transformation is done with such detail and creativity, making it genuinely unsettling. It's the kind of film where the practical effects not only enhance the horror but become a character in their own right.
Another must-see is
An American Werewolf in London (1981). The transformation scene is iconic, and that's thanks to the incredible work of Rick Baker, who won the first-ever
Academy Award for Best Makeup. The way the practical effects portray the agony and horror of turning into a werewolf is both compelling and chilling.
For something a bit more modern, check out
The Descent (2005). The use of practical effects really contributes to the claustrophobic atmosphere, and the creatures are terrifyingly realistic. The makeup and practical effects create a visceral fear that enhances the tension throughout the film.
On the underrated side, give
Hellraiser (1987) a watch. The Cenobites and the overall aesthetic of the film are driven by practical effects that have an unsettling yet fascinating quality. Clive Barker's vision combined with the practical effects creates an atmosphere of dread that's hard to shake off.
Lastly,
The Fly (1986) is a perfect blend of horror and body transformation. The practical effects by
Chris Walas are disturbing yet mesmerizing, showing the gradual change of Jeff Goldblum's character in a way that CGI simply couldn't replicate at the time.
These films really show how practical effects can enhance the emotional and psychological impact of horror, making them unforgettable.