Sail to Urdus Marshland, which is to the north of the Djust Desert. Then walk north to the Iluugazar Plains, and enter the village of Batsureg in the center of Iluugazar Plains.
Stop the Beast
Visit the northwest house in Batsureg to meet Batkhaan and Sarantsatsral, who seems to know more about the Fygg than she is letting on. After a scene, you will be asked to deal with the beast. Agree to do it, then leave the hut. Watch the scenes. You will be asked go to the yurts to the north to help Batzorig prepare to fight the beast.
Visit the Hunters' Yurts
Walk north from Batsureg to find a small fenced-in area. Go inside. Try to go into the northernmost yurt. After a scene, find Batzorig in the southern yurt. He will leave, and if you talk to the man outside, you will learn that Batzorig has gone by himself across the north bridge. Go outside and cross the north bridge. Go west to follow after Batzorig. You will reach Mt. Ulbaruun near the west end of the map.
Mt. Ulbaruun
Inside Mt. Ulbaruun, you will see a scene. After Batzorig leaves with the beast, Khoonbish, go talk to the ghost of Bayarmaa (Batzorig's mother.) She asks you to gather the bodura grass from Gerzuun, to the east, and give it to Batzorig. Leave the cave and go all the way to the east. This region is called Mt. Ulzuun. Go into the cave in the swamp to find Gerzuun.
Gerzuun
Check on the gate up ahead and Bayarmaa will unlock it for you. Go north and into the hut if you want to break some pots to get random items. Be warned that monsters can appear in this hut.
There is nothing of interest northwest of the hut, so go southwest from the hut, then southeast down some stairs to find a stairway leading to a lower floor.
Gerzuun Jail
There are locked jail cells here. Go to the west side of the room and go north to find two red treasure chests. They contain a Sober Ring and a Hephaestus' Flame. Go back upstairs.
Gerzuun Again
After you go up from the jail cells, go west across a bridge. Enter the hut on the left to get some random items from the cabinets. Again, be warned that monsters can appear inside this hut.
Back outside, go up the stairs, then go to the right. There is a blue chest at the end of the path here. Then go around to the left. You will reach an area on the left side of the map. Head south to find a well. Go into it and you will find a blue chest on the left. To the right, there are some places to get random items. Monsters can appear in here.
Go back up out of the well, then head north. In the hut here, you will find a red chest that contains a Mini Medal. Check for random items in the cabinet, then go back outside. To the east, you will see a door in the north wall, but before going in there, go south to the central area. There are red and blue chests at the ends of the bridges here. There is a Slime Crown in one red chest, and a Resurrock in another.
Once you are done looting the chests in the center area, go through the door in the north cave wall. Talk to the ghosts if you wish, then head north and down the stairs. Go south and check on the flower to gather some bodura grass.
Give Batzorig the Bodura Grass
Now you can cast Evac to get out quickly, then go back to the Hunters' Yurts. Batzorig is in the southern yurt. Talk to him and give him the bodura grass.
Go to Batsureg, and go northwest toward the chief's hut. After a scene, Sarantsatsral's true form will be revealed, and you must fight the monster, Larstastnaras.
Larstastnaras
Larstastnaras will use Magic Barrier to increase resistance to spells, Dazzle to cause hallucination, and Boom to damage you. She can knock down the party with a flurry of flowers. She also uses normal attacks that drain MP. She can do two attacks per turn.
After you defeat Larstastnaras, her actual true form will be revealed, you'll get the Fygg, and she will go back to the plains. Afterward, there will be a scene. Then you can go north from Batsureg, cross the bridge to reach the Mt Ulbaruun area, then go west to the Mt. Ulbaruun cave and watch a cutscene, then check the grave to get a Spirit Bracer.
Now you can move on to the next part of the game. Go southeast from Batsureg and cross the bridge to return to the Urdus Marshland. Then go east to get to Hermany. At the far east coast, you can go north to reach Snowberia. Go north and cross the bridge to reach the Snowberian Coast area. Go north and follow the dirt road to reach the next area. In the center of the area, you will find Swinedimples Academy.