Context. Of the presently known ≈ 3900 exoplanets, sparse spectral observations are available for ≈ 100. Ultra-hot Jupiters have recently attracted interest from observers and theoreticians alike, as they provide observationally accessible test cases. Aims. We aim to study cloud formation on the ultra-hot Jupiter HAT-P-7b, the resulting composition of the local gas phase, and how their global changes affect wavelength-dependent observations utilised to derive fundamental properties of the planet. Methods. We apply a hierarchical modelling approach as a virtual laboratory to study cloud formation and gas-phase chemistry. We utilise 97 vertical 1D profiles of a 3D GCM for HAT-P-7b to evaluate our kinetic cloud formation model consistently with the local equilibrium gas-phase composition. We use maps and slice views to provide a global understanding of the cloud and gas chemistry. Results. The day/night temperature difference on HAT-P-7b (∆T ≈ 2500 K) causes clouds to form on the nightside (dominated by H 2 /He) while the dayside (dominated by H/He) retains cloud-free equatorial regions. The cloud particles vary in composition and size throughout the vertical extension of the cloud, but also globally. TiO 2 [s]/Al 2 O 3 [s]/CaTiO 3 [s]-particles of cm-sized radii occur in the higher dayside-latitudes, resulting in a dayside dominated by gas-phase opacity. The opacity on the nightside, however, is dominated by 0.01 . . . 0.1 µm particles made of a material mix dominated by silicates. The gas pressure at which the atmosphere becomes optically thick is ∼ 10 −4 bar in cloudy regions, and ∼ 0.1 bar in cloud-free regions. Conclusions. HAT-P-7b features strong morning/evening terminator asymmetries, providing an example of patchy clouds and azimuthally-inhomogeneous chemistry. Variable terminator properties may be accessible by ingress/egress transmission photometry (e.g., CHEOPS and PLATO) or spectroscopy. The large temperature differences of ≈2500 K result in an increasing geometrical extension from the night-to the dayside. The chemcial equilibrium H 2 O abundance at the terminator changes by < 1 dex with altitude and 0.3 dex (a factor of 2) across the terminator for a given pressure, indicating that H 2 O abundances derived from transmission spectra can be representative of the well-mixed metallicity at P 10 bar. We suggest the atmospheric C/O as an important tool to trace the presence and location of clouds in exoplanet atmospheres. The atmospheric C/O can be sub-and supersolar due to cloud formation. Phase curve variability of HAT-P-7b is unlikely to be caused by dayside clouds.