It is located in the ruins of the castle where the Dragon Knight Lord Orobas once resided. "Dragon Worshippers" live there, praying for the day that Lord Orobas escapes his prison (this crypt) to rule once more. Jedediah gives the quest Down the Hatch which concerns the freeing of Lord Orobas and he can be found pacing around the hatch. After gaining entry however, you find Lord Orobas' bones and conclude that he died while he was trapped in there. Dragon Knights may be powerful and capable of long lives, but even they could be brought low by starvation and thirst. After that the player leaves the hatch only to spring the trap set by the "Dragon Terror Squad," composed of ex-Dragon slayers who are looking for another victim.
Orobas's Crypt contains a magical chest, which asks three questions that you must answer correctly in order for it to open. The answers are:
1. Three skulls
2. One health potion, two apples, one droxlerite
3. Four candles