There’s not much to do here, so head into the house for the Crab x2 and then leave.
Follow the path, grabbing the Fancy Fur and sparkling points to find the Magic Carta No. 12 , and then examine the tree for the Peach Tree discovery, Peach x3 , and Just Peachy skit.
Keep going east and when you reach the split head east, toward the fortress that divides Fendel from Lhant, to find chests with an Anonymous Seed and Seascale Crystal . At the border, watch the Border Crossing skit and then backtrack.
Head north at the split for a scene and then watch the Just Another Coinkydink skit by the crater. Head north to follow the west wall, backtracking up the cliff south for a chest with 2520 Gald , and then continue north against the west wall for another chest with a Green Ribbon .
You can now make your way to Velanik, but you should make sure to have 5 Strahteme Horn’s before you enter town.