Twilly is a small red orange moglin (whose favorite town is Battleon and is almost always found there) with magic special abillities, that heals your health and mana and offers some quests. On some days, Twilly is either replaced or given an umbrella, to fit in with the occasional rain. He is a major role in the story, as part of Dragon Egg Saga.
It is cuddlier "than any fabric softener bear and more puntable than a football". Twilly is a true friend to all. His helpful heals in the town of Battleon have made him one of the most liked and famous Moglins in the world of Lore. No one is quite sure how he got that chunk taken out of his left ear. Twilly is a good Moglin that you can count on.
Aside from the many quests that are available through him, he seems to appear in... almost every quest and war when you need him! He helps you as a Dragonslayer in certain wars too! He also shows you your moral compass. You can also visit his home village of Rugglum, and train in the Moglin Forest. He also tells you where the stat trainers are and always has some quests for you.
After that, he first asks to you go to find Robina the Hood and later he asks to go after Valencia, the treasure Hunter, then the Egg is stolen by a giant Vultragon, after that, you got 5 eggs and Warlic summons the Doomkitten to reveal real egg, then it's placed on a cave and finally the egg hatches.