This quest is available starting in Chapter 8.

Speak to the guard in front of the gate west of the Courtyard in Lazulis Castle. Then go to South Gate Plaza and speak to the old man sitting on the bench. He will give an Ointment. Go back to the west gate of the castle and give the foot Ointment to the guard. He will be thankful and give you a Dragon Skin as a reward.

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