Whack bushes and critters in the haunted forest until you find Ellen's locket. Return it to her in the Haunted Village. The locket is very rare and it may take you some time to find it.

SQuests - TLLocket

Zone Received In: The Haunted Village

Previous Quest: Progress to Level 65!

Stage 1: Find Ellen's Locket

Stage 2: Return to Ellen

Rewards: Sharp Machette (Gate unlock item), 150xp (!)

Note: While technically a Side Quest, this is actually required to complete some of the later Main Quests, as such it should be completed as soon as possible.