Once you return to Narshe, you’ll learn that the town, originally neutral, has decided to side with the Returners. A rather complex plan is made regarding what to do. So, anyways, we know what we’re doing, right?
Let’s go visit the shops… The weapon shop has a good weapon, the Hawkeye, for Locke – there is a ~50% chance of it doing 50% more damage to non-Floaters and 200% more damage to those who ARE Floating. Interesting… As for armor, buy some Golden Shields and Golden Helms for everyone except for Terra; give her the Tiara instead. Then give the Power Sash to whosoever you think needs it. There’s nothing new to mention in the Relics or the items; buy what you want and restock your supplies.
Now, there’s one more thing we need to do. Have you ever heard of the Lone Wolf? Final Fantasy V players probably remember him and how, when released, he would steal three treasures from unopened chests in the game. Annoying, right? It was the very reason why he was imprisoned and you stupidly released him.
Now, do you remember the old man who gave you the small trove of treasures last time you were here? He worries about that locked chest. Go into the house and look to find the Lone Wolf running off. Follow him for a while; he’ll soon head to the mines.
Once you have him cornered, he’ll end up taking a Moogle as a hostage. You need to stay still for a moment and the Moogle will soon free himself and the resulting struggle sends the both of them over a cliff.
You now have a choice – either get the Gold Hairpin or recruit the Moogle into your party. The Gold Hairpin will reduce your MP usage by 50% and is used as a Relic; not really recommended to me. The superior choice is to recruit the Moogle, Mog, into your party - he was the leader of the Moogle party when they saved Terra alongside Locke.
In a moment, we’ll be doing some sidequesting. Part of this will be to get him some more Dance skills for him, for his Dance is rather powerful. Okay, head back into the overworld.