In the Heart of the Woods
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When you enter the village of Fayrlund you’ll find a group of men arguing over a dead man’s body. He appears to be caught up in the branches of a tree. Talk to them to find out about the Woodland Spirit that haunts the nearby forest.
The men appear to not agree on what the creature is and what to do about it. The village elders think it is a spirit that makes the warriors strong. The younger men, including Sven, think it’s a common beast that should be killed.
Use your Witcher sesnses and follow the trail out into the woods. You’ll come across a dead dog and then another body. Finally the trail will lead to a ring of stones protected by Wolves.
Kill the Wolves and then examine the scratch marks. Geralt will conclude that the creature is a Leshen. Open the bestiary to learn about the creature and then return to Harald and Sven.
You can talk to both men before deciding on a course of action or either one of them. They both have different plans. Sven wants to have the creature killed while Harald once to perform a ritual to appease the spirit.
Performing the Ritual (Harald)
If you side with Harald make your way out to the altar in the woods. Once there you’ll be attacked by 5 White Wolves. Kill them and take the 5 Wolf Hearts. These need to be placed on the altar to appease the spirit.
Return to Fayrlund to let Harald know the ritual is complete. When you get there Sven and the other young men will interrupt you. They’ve killed off the other village elders and are coming for Harald next. You can stand aside or protect Harald. Either way you’ll earn 60 Crowns for completing the quest.
Killing the Beast (Sven)
The Leshen can’t be killed unless you drive the marked person from the village. To find the marked person look for the crows on the roof. It should be the last house on the western side.
It turns out that the marked person is a young woman named Hilde. Return to Sven and let him know. Hilde will either be killed or run out of the village, depending on how you respond.
Return to the woods and use the map markers to find the 3 Totems. Destroy them and the Leshen will appear. Kill the Leshen and loot it for the Leshen Trophy. Make your way back to Fayrlund and talk to Harald.
It looks like a massacre has taken place. While you were gone Sven and the other young men rounded up the elders and killed them. The quest will then complete and you’ll be given 60 Crowns for your reward.