This is part of a first-playthrough guide using the Faerie story arc. It covers both the original PSX version and the 2021 HD remaster, though some place and item names differ slightly in the latter. You can find an overview of the Faerie% path here.
The Quick Version
It’s now time to visit Lake Kilma, another Faerie-haunted land that will play a role in this story arc. Before we can advance the Faerie plot, though, we need to help some stranded pirates. Follow Cap’n Tusk and his crew around the lakeshore, then take a leap of faith and defeat the master of the lake. No Artifact this time, either.
The Gorgon Eye is the “starter event” for Lake Kilma and thus a blocker for any other quests we want to do there. Fortunately, it’s pretty quick. 🙂
From the entrance, follow the cap’n and his crew to the lower left (Southern Woods), then go left to a room with some petrified pirate penguins. The upper right path takes you to the Southern Shore, and going right will bring you to a turtle in need. Help the turtle, then proceed to the lower right (In the Woods; HD: Wooded Paths). Another right and you’ll see a scene with the captain and crew, so you know you’re on the right track.
From there, go to the upper right (Eastern Shore), right (Wooded Paths), upper right (Northern Shore), and upper left then left to get to the Cliff Overlooking the Lake (HD: Lakeside Cliff). After a brief scene, talk to the turtle and jump off the cliff. You’ll be volunteered (by the turtle) to fight the master of the lake, a.k.a. the Gorgon Eye boss.