The quest is initiated when you find a parchment named The Last Weresheep in King Boreas' treasure room. This quest cannot be resolved until entering the Phantom Forest towards the end of the game.
- Find the parchment, The Last Weresheep in King Boreas' treasure room in Hiberheim.
- Optional: Find the book The Legend of the Weresheep in the Cyseal Church graveyard after dealing with The Graveyard Madman.
- Progress through the story until you can enter the Phantom Forest.
- Head northeast until the northern Waypoint Portal. From there go northeast to find the Kickstarter Tree and get 4590 Exploration XP. Optional: Activate the tree to see some credits.
- Drop a stardust herb on the ground in front of the tree and the Weresheep will appear. It is not aggressive.
- There are several ways of obtaining the wool:
- Trade with the Weresheep and buy the wool for 1 coin. (In the Enhanced Edition you cannot trade with it even with Pet Pal talent, but you can pickpocket it)
- Speak to the Weresheep and win the RPS game. After you win, sheep gives you the wool and runs away.
- Kill the Weresheep for the wool and 12600 XP (in EE it is 31500 XP). This is a tough battle.
- After obtaining the wool through whichever method go to the Elemental Forge in Hiberheim from Find The Witch!
- Use the wool on the forge to obtain the Weresheep armor, very good level 16 armor, and complete the quest.
- Weresheep Armour, Boots, Bracers, and Helmet
- 4590 Exploration XP
- Optional fight : 12600 XP (EE = 31500 XP)