When you explore East of Cyseal town, you will eventually run into a dog.

If you have the Pet Pal Talent, the dog, Doxy, will say that you smell like the hero he's been waiting for.

He will lead you to a pack of hostile wolves whom you can kill for some XP.

The dog will disappear shortly after you kill all the wolves.

There is a trove of items "buried" under a tree near where the wolves spawn.