The Wailing Banshee is a side quest in Pillars of Eternity.
Synopsis
Niah, a woman from New Heomar, paid good coin for the old Lighthouse in Ondra's Gift, hoping to develop it into an inn. However by the time she realizes that the lighthouse is haunted, the seller is already long gone. Close to giving up after weeks of being unable to find any workers brave enough to renovate the place, she asks for the Watcher's help in clearing out the building.
Walkthrough
On the docks in the south-west portion of Ondra's Gift you will find Niah looking to hire someone for a task. She is trying to renovate the old lighthouse ruin to the west of her, but rumors of its haunting have driven away her laborers. She'd like someone to take a look around the place to prove it's safe for work to begin. Accept the quest, and she'll give you the key to the lighthouse.
Head into there and make your way up to the third floor. Loot what you find on your way, don't miss the loose brick on the first floor, but beware of two scripted ambushes with numerous spirit critters.
Once arrived on the top floor, you find Lilith, the wailing banshee that haunts the lighthouse. There are two ways to complete the quest from here forth:
- Kill Lilith
Come too close to her, ignore her threats, or attack her ouright. This triggers a big fight that can be very difficult for a low-level party. Several shades and spectres come to her aid, and her wail can paralyze your characters. Once you have managed to defeat them all, head back down to Niah who is waiting just outside the lighthouse. Give her the "all clear" and claim your reward.
If you're not able to convince Maerwith to come here (see below), you will have to fight when you return and talk to Lilith.
- Release Lilith from her pain
You might observe her and get hints on what to do best next (1st Perception check, 18 required), you might even come closer (2nd Perception check, 15 requried) – but watch out for signs of threats, and back up. Search the area to find a Logbook that mentions a ship called Red Dream. Reading it and the Evacuation Notice, found on the previous floor, will reveal some background. In a chest behind Lilith (to the west), Lilith's Shawl (Perception +3) can be found.
Niah, just outside the lighthouse, has more information and knows where to find the captain of the pirate ship. She directs you to The Charred Barrel in Brackenbury, where you find Maerwith on the upper floor. Don't be provocative or uncaring, and you'll convince her to visit her mother in the lighthouse.
Return to Niah to claim your reward.
Note
If you return to the lighthouse a few days after completing the quest, Niah will have converted the ground floor into The Wailing Banshee Tavern.