Head back west, across the sea and down to where the River Devil waits. Play the Flute by standing next to it and pressing B. You’ll hear a little ditty Link plays and then the River Devil will disintegrate. Head down the mountain path.
Along the way, you’ll get stopped by cutscenes marked in the screenshot with red squares that you have to fight on. Lizalfos will attack on foot as well as climb up the other side of the fence and throw rocks at you. Take out the hooligans on foot but dodge the very predictable throwing patterns of the ones on the fence. You can easily avoid the stones by walking back and forth as they’re throwing, which will confuse them and not know where to throw them. As you pass the third cut-scene and go by the graveyard, stay on the road. Don’t go through the path onto the lava. That’s the way to the Great Palace, and you’re not ready for that yet. The graveyard is filled with the bodies of the people who used to live in the town you can see below you, which is Old Kasuto aka Pleasantville. Only one person still lives there now, but you’re not equipped to go there yet. If you do, you’ll be attacked by invisible monsters. Instead, we need to find New Kasuto. But first, prizes!
HEART CONTAINER, LINK DOLL & EXPERIENCE POINT BAG (x2)
Cross the bridge (or, if you don’t want to, walk north and then east through the forest) to get to the eastern coast. It’s suggested to go the northern route especially if you’re interested in goodies. In the spot in front of Link in the swamp is a Link Doll, marked by the red star. In the northern cave, there is a 500 EXP Point Bag. After getting the Link Doll (If you did) and the EXP Point Bag in the cave, walk through the forest eastward toward the coast. On the spot in front of Link in the third screenshot, the last Heart Container waits. You’re probably thinking, what about the final Magic Container? Let’s head north, into the Forest cave by the lake.
On the way there, the spot in front of Link has another 500 EXP point bag on it but watch out, you’ll immediately be confronted by a Red Lizalfo. They look similar to the Orange, but the Red has a mace that you can’t block and you only get 100 EXP points for killing it. Grab the bag and head to the cave. There are Orange and Red Lizalfos along with jumpy energy beam throwing spiders. After you leave the cave, get to the spot where Link is standing. Hack away at the trees with the Hammer (just press A) and you’ll reveal the Hidden town of Kasuto. This is where some of the residents fled to in order to escape the destruction of Old Kasuto by the monsters.
HIDDEN TOWN OF KASUTO
The first old, blue lady that comes out of her house (next to the lady who’s just standing there) is feeling particularly generous and wants to help. Follow her inside her house. Inside, talk to her and she’ll tell you about something else as well. In the basement is our final Magic Container. Head into the next section of town, until you find the house that’s open, like the one pictured. Inside, find the chimney. Stand in front of it and press up on the control pad. You’ll end up in a basement (What? – Didn’t you just go up?) where the Sage of New Kasuto will grant you a new spell. It’s called Spell and it’s one of the most useless spells in the game. No one knows what it’s useful for, and even the instructions are vague. Plus, you really only use it once in this very same town. The final section of town is just a big open field. Strange, huh? Well, cast Spell and see what happens. A building will shoot up out of the ground! Enter the building. Inside, you’ll find the Skeleton Key. Now, you never have to worry about a locked door in a dungeon ever again, as you have the Master Key now! Fill up your magic and head back out of town.
If you want to (and it’s highly encouraged you do), the forest to the north of Three Eye Rock Palace (surrounding the lake) has excellent opportunities for level grinding. Simply walk around in the forest until the enemies appear, then find a slime enemy. This will present you with two Orange Lizalfos per opportunity on either side of you. Each time you fight and kill both of them you’ll gain 300+ EXP. They regularly drop 200 EXP Point bags too. This way, you can level up quickly maxing out all your stats at level 8.
FINDING THE PALACE
The palace is buried underneath the sand in the desert where you found the Heart Container. Head back through the cave and south, through the forest and into the desert until you see the Three Rock triangle formation. Stand exactly in the middle of the two bottom rocks and play the flute again. Congratulations, that’s the last time you’ll ever use the flute and the Palace will magically appear out of the sand, completing a diamond formation with the rocks.