Despairia (Dread Realm)

DQ6 Walkthrough - Despairia in the Dread Realm.

Walkthrough

Use the Celestial reins to have Pegasus fly. While flying, press X to make Pegasus soar up into the sky beyond the realms. Peggy Sue will take you to the Dread realm. In the Dread realm, all of the party menber's maximum HP is 1, and maximum MP is 0 for now.
Visit the town called Despairia in the Dread realm. Talk to the townspeaple to learn about Lotus Lagoon.
Talk to Max Wynne, the armoursmith from Dullerton. He is in the basement, where you can reach by the stairs in a ruined house at the west of town. Max Wynne will ask you to take his Old Pipe to his wife in Dullerton.
Get out of Despairia and go west to find Lotus Lagoon.

Hand Max Wynne the Tools you received from Mrs Wynne at Dullerton. Max Wynne will forge an armour especially for you. You can choose one among three armours, such as Armour, Helmet, or Shield, to be forged. Sleep in Max Wynne's bed.
When you wake up, Max Wynne is gone outside. Your armour is on display in the room, so be sure to take it. To find Max Wynne, head over to the armour shop in Despairia. Talk to Max Wynne and he will wake up the shopkeeper of the armour shop. The armour shop will run again.
Now that Despairia is filled with hope, your maximum HP is no longer 1, nor is your maximum MP 0. Your HP and MP are both back to their original states.