Upon freeing Ursula from the Dazzle Beach Cursed Cave in Disney Dreamlight Valley, you can start her first friendship quest, named Lair Sweet Lair.
As you probably guessed from the questβs name, Lair Sweet Lair is about getting Ursula, or the Sea Witch, accommodated in the Valley, who, in return, will give you a Shrimp and a Bream (fish).
Youβll also receive 180 XP points. I know the rewards are not that good, but what do you expect from a villain?
The quest can be problematic because you have to craft Glass and other Refined Materials you havenβt encountered yet in the video game developed by Gameloft.
No worries, though! Throughout the walkthrough below, we will tell you how to complete every single objective and get the Sea Witch settled.
How To Start Lair Sweet Lair In Disney Dreamlight Valley
To start Lair Sweet Lair, you first have to complete the With Great Power story quest you get from Merlin, in which you must free Ursula, who was imprisoned in a Cursed Cave. You can check this guide if you need help in liberating the Sea Witch.
Find Ursula and talk to her once youβve set her free. She should always be where there is water, including the ponds in Peaceful Meadow.
Donβt forget you have the in-game map to assist you if you canβt find the villain.
If Ursula is in the sea and you canβt reach her because of the water, just get as close as you can, and she should come to you.

How To Place Ursulaβs House In The Water
You agree to give the Sea Witch a home after your little conversation with her.
Most of the house must be in the water, so think where exactly you want to place the Lair on the beach and press Y on your Xbox controller.
Then select the Furniture tab and go to Ursulaβs icon under requests. Press A, select Ursulaβs Lair and press A again.
Now position Ursulaβs house so that the area under it is highlighted green, as shown in the next image.

The next step is a little rough because you have to pay 10000 Star Coins to finish the Lair.
But like the good Villager you are, you donβt even think twice and pay the amount by interacting with the blue sign in front of Ursulaβs future home.
How To Gather Paper From The Villageβs Houses
Upon talking to Ursula to see what she thinks about her new house, you receive another task, and that is to get her some Paper from the Villageβs houses.
More precisely, you have to visit the houses of Goofy, Mickey, and Merlin to get the required Paper in Disney Dreamlight Valley.
If you forgot where the houses of the three Villagers are, let me help you by sharing the following map.

So, Goofyβs house is in the middle of the Peaceful Meadow area, Merlinβs house is on the west side of the same area, and Mickeyβs house is in the southwestern corner of the Plaza area.
Go to each house and get the Paper. Youβll find the item on a table in each house.

Go to Ursula once youβve gotten the Paper and see what other shady task she has for you.
How To Gather Dream Shard
The Sea Witch wants you to craft a Magical Scroll and Ink Kit for which you need to gather the following items:
- Dream Shard x6
- Purple Pigment x2
- Empty Vial
Letβs start with the Dream Shards, which you should have more than enough by now in your inventory or house storage.
But just in case you donβt, go and farm some Night Thorns because they drop Dream Shards sometimes.

How To Craft Purple Pigment
Now, if you go to a Crafting Station, youβll see that to craft Purple Pigment x2, youβll need:
- Purple Falling Penstemon x8
- Purple Rising Penstemon x8
If you donβt know where to find Purple Falling Penstemon, note that it is the purple flower you can find only in the Plaza area. So, just look for all the purple flowers in the said area.

And if you are wondering where to find Purple Rising Penstemon, just look for the purple flowers in the Peaceful Meadow area.
They look a lot like the ones from the Plaza but shorter.

You might have to farm for a while if you are not lucky and have to wait for the flowers to respawn.
When you are done, go to a crafting station, interact with it, and craft the Purple Pigment x2 from the Refined Material tab.
How To Craft Empty Vial
Another item that you need to craft in the Lair Sweet Lair quest is an Empty Vial, for which you need Glass x3.
And to craft Glass x3, you need:
- Sand x15
- Coal Ore x3
You get the Sand by simply digging anywhere on the Sand in Dazzle Beach.
However, youβll have to dig for a while because the Sand is not a guaranteed drop.

Once you have the required Sand, you need to get Coal Ore. You might already have it, so check your inventory and storage.
If not, Coal Ore comes from mining the black rock deposits on the walls of the mountains.

Like the Sand, the Coal Ore is not a guaranteed dropped, so mine until you have 3 of them.
Now that you have the materials, go to a crafting station and craft Glass x3.
You can find the Glass under the Refined Material tab after you interact with the crafting station.
Also, from the Refined Material tab, you can now craft an Empty Vial using the Glass, so do it.
How To Craft Magical Scroll And Ink Kit
You can now finally craft the Magical Scroll And Ink Kit, so go to the Functional Items tab while at a crafting station and select Ursulaβs desired items from the list.

All that remains to do is to speak with Ursula and give her the items youβve worked so hard for, completing the Disney Dreamlight Valley Lair Sweet Lair friendship quest and unlocking the next one in line named Magic Moments.