Find Dwarf Ledo in the Land of the Dead.

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Introduction

Although it is only the Ghost of Tyr Spirit Sword that is absorbing the power of the souls, he has become powerful and is tipping the balance in the Nightmare Domain. We must defeat the Ghost of Tyr Spirit Sword before we can purify the souls.

NPC Dialog

You look so tired, what can I do for you? Oh, the
Tyr Sword...I'm afraid it is out of control. The
balance of the Nightmare Domain has been broken,
Aku must be in deep trouble with Hades. For his
sake I will aid you. I know you're familiar with
Mjollnir so you must know it is powerful, but did you
know it is the only weapon that can truly counter the
Tyr Sword? I know a Dwarf named Ledo who has
recently arrived in the Land of the Dead. He has
reforged Mjollnir, unlocking its true power. Tell him
you must use it.

Quest Completion

Oh, human! Do you have wine?