Lycanthrope Island, also known as Werewolf Island and Isle of Balduran, is a small island somewhere in the Trackless Sea. It is here that Balduran's ship, Wandering Eye, made anchor for the last time.
The island is split into two areas:
Lycanthrope Island South has a small fishing village supposedly inhabited by humans.
Upon exploring the werewolf village, you are directed to speak with Kaishas Gan, the leader of the village, who asks you to help rid the island of the "beasts" that have been harassing the village for years. In return she will help the party escape the island.
Dradeel is a elven mage holed up in a abandoned hut in the northern half of the island. He will task you with retrieving his spellbook in hopes that it might help in discovering a way to leave the island.
Palin tries to lure Gorion's Ward into a trap.
Meym is one of the so-called "beasts" that plague the island.
Lahl is a farmer in the village.
There is a bug in at least some European versions of the game, where certain events duplicate themselves an infinite number of times. The Sirine Queen, who must be spoken to to complete the Evalt's Missing Brother quest, has been cloned endlessly, and every single one demands to speak to the player. There is also a brief cutscene which plays when the party enters the Wandering Eye, and this scene plays over and over again for as long as the player is in that area. However, it will stop if the player leaves the ship, goes upstairs, or pauses the game.