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The Dream Ruby is part of a subquest involving the village of Noaniels and the village of Elvenham. A man from Noaniels fell in love with the daughter of the queen of Elvenham. However, their love was forbidden by the queen and as a result the daughter stole the Dream Ruby. The queen, thinking that the village of Noaniels had solen the ruby, placed a sleeping spell on the village. Meanwhile the daughter and her lover left a note and committed suicide in the Cave West of Noaniels.
In the original game release, the Dream Ruby is a key to a major glitch known as the Dream Ruby Glitch.
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