UESP
Modded
Nix-Hounds are somehow associated with dreams.1 Likely a reference to PGE2.
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A Mer-Eater Nix-Hound? It needs to be killed. Else none of our dreams will be safe. You should speak to Maela Kaushad. She used to be a Wise Woman and knows how to deal with nix-beasts. Or go talk to the ashlanders.
— Vos Villager (dialogue)1
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This beast has been here for some time. It intrudes on my dreams and visions and grows stronger with every spirit it consumes. Our hunters have not been able to find it. I believe it has become very cunning to evade capture. A dangerous beast indeed.
— Wise Woman (dialogue)1
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I’m glad to hear that the nix-beast is dead. Nix-hounds are typically content to scavenge for scraps outside of camps and towns. But occasionally one is emboldened by the smell of vulnerable spirits and will attack. Consuming the body and spirit of the victim and becoming even more powerful and cunning. I am pleased that you managed to end this insatiable cycle.
— Maela Kaushad (dialogue)1