Diango is a merchant who was released as a part of an April Fools' joke. Players had been requesting horses in the game for some time, and were excited to find out that Diango was to be added to sell "horses" in his store (Diango's Toy Store) in Draynor Village. However, Diango actually sells toy horseys, which are not rideable and are mostly useless. He has, however, since gained more functions, the most prominent one being able to return lost holiday rewards and selling or giving special commemorative items.
Updates
4 April2005: Jagex had announced the release of "dragon plates". What was actually released were spinning plates with a picture of a dragon on them. A conversation with Diango revealed that they were supposed to arrive on the first of April, but thieves stole them because they mistook them for Dragon platebodies.
1 April2008: Similar to the spinning plate joke, Diango started to sell Dragon Kites; not the dragon kiteshields players had long been hoping for, but a red kite with a picture of a dragon that players may fly, called Toy kites. After buying one for 100gp, players can wield the kite and have it float alongside them or choose the Fly option and fly the kite for a moment in a strong breeze.
A hidden update on 16 December2008 allowed players to right-click on him to claim holiday items.
A hidden update on 28 April2010 added an option to redeem codes. The redeem-code was used to obtain the Flagstaff of Festivities for those who purchased RuneFest tickets.
Around 20 January 2013 (?): The right-click "Holiday items-Diango" got changed to "Retrieve-Diango". The Holiday item retrieval screen also changed, with the left-half of the interface being holiday items, and the right-half of the interface being promotional items.
Besides the standard holiday items, the following items can also be retrieved from Diango if lost: