Fang Lair ( Quest ) Fang Lair is the second part of the second main quest of , and is in an abandoned Dwarven mine / fortress near the northern areas of Hammerfell , just north of Elinhir . Background . Story . The second part to the second main quest of " Arena " . Following the successful deciphering of the Elder Scrolls in the Rihad Palace , the Eternal Champion is given the location of the legendary Fang Lair . The Champion now must finish the first part in their ten year journey , and collect the first piece of the Staff of Chaos at whatever cost . Walkthrough . Fang Lair . The Fang Lair is located farther north of Rihad than the Stonekeep is , nearing the northern borders of Hammerfell to Skyrim , the closest town being Belkarth Guard . The Fang Lair is relatively the same size as the Stonekeep , but is much more complex , containing multiple series of underground tunnels and hallways . After the Queen ' s parchment is returned , the Eternal Champion can then proceed to Fang Lair . Before entering the dungeon , it is recommended to buy better equipment ( or repair current ones ) , buy at least 5 even 10 Potions of healing , and 2 Potions of Resist Fire ; if the Champion is repairing equipment , they can do some side quests to pass the time . After preparation , they will be greeted by a massive dungeon . Fang Lair is an ancient Dwarven mine that is home to many creatures such as skeletons , minotaurs , ghouls , and spiders . All enemies are quite deadly to a low - level opponent , so it should be taken into consideration to avoid them as much as possible if lacking the proper equipment . The room to the piece of the Staff of Chaos itself is to the southwest of Fang Lair . A good way to reach the door with few enemies is to follow the game ' s advice and follow the railroad tracks ; following them will present the Champion with a couple skeletons and maybe even some ghouls , so one should remain cautious . After a time , the railroad tracks will lead to a hole which will be " Mine Shaft ( Letter ) " if the Champion jumps in it . Follow the map to the left until a big room with cells lining the walls is encountered . Some cells have spiders in them , while others have loot . The Eternal Champion can choose whether to loot the cages or continue . At the end of the room , there are three doors — two of them have spiders , and the other holds the golden key to gain access to the second level of Fang Lair . The Champion will have to walk up to the door and answer a riddle in order to get the key . The answer is Cell 2 . Answering wrong will open the spiders ' cages and they will attack the Eternal Champion . They , however , can answer the riddle until they get it right . After the Champion has answered the riddle , going into Cell 2 will reveal the Golden Key , which will then give access to the second level of Fang Lair . The second level of Fang Lair is linear ; after going through the hallway and fighting a couple of skeletons , there is a square room with lava on the floor and the staff piece is guarded by two Hell Hound s . If the Eternal Champion is paranoid about jumping into lava , they can drink a Potion of Fire Resist beforehand . It is recommended that before going to the door to get rid of enemies on the perimeter of the room to avoid later complications . All enemies except for the two hellhounds are skeletons though they are often groups so caution is advised . Before going to the door , saving the game is recommended . When the Champion proceeds to go to the door , it will ask another riddle : The answer is Gauntlet . After the door opens , two Hell Hounds will attack the Champion . This fight can be hard or easy depending on the Champion ' s class and their stats . Regardless , they should drink their Potion of Fire Resist to be resistant to the hellhound ' s fireballs as this will also make the fight much easier . High willpower is also useful since the hellhounds ' fireballs are theoretically NPCs casting spells at the Champion . Regardless of how they are killed , the Champion will then have obtained the first piece of the Staff of Chaos . Ambush . The Eternal Champion can now leave the Fang Lair , and does not have to return . When leaving , it is recommended to leave as soon as possible . The reason for this is because if the Champion rests , or delays resting for a period of time , they will forcibly rest for an hour and be contacted by Jagar Tharn himself . Tharn will be enraged that you ' re trying to save the true emperor , and will send one of his minions to attack the Champion . After the assault , if the Champion rests again Ria Silmane will congratulate and tell the Champion the location of the second piece , saying that Tharn shouldn ' t know of your whereabouts , ignorant of what had happened .