He locked himself in a room to avoid some hobgoblins, but managed to leave the key to unlock the door elsewhere, outside the room. He was not planning on leaving until the hobgoblins departed, but does ask the player to help him solve his dilemma in the Waterfall Quest. Being a practical-minded gnome, he realises the utility of asking folks outside of his jail cell if they might be so kind as to look for the key. The key can be located by searching some crates on the east side of the dungeon, the crate is on the east side of the room as you first enter, and it is slightly a different colour than the others. The hobgoblins seem quite content with their surroundings though, so Golrie waits. He is quite content to do so it seems, and rewards the player with Glarial's pebble when given the misplaced key to the door in the Waterfall Quest.
The player wants to know more about anti-illusion devices and when the player asks him, he tells the player that his grandfather used to travel the world and collect elven items to send it to him as souvenirs. He would keep the parcels and crates he received, in the storeroom located in the other part of the dungeon. He will tell the player to search his storeroom for a key. Once the player finds the key, they go back to where Golrie is and use it on the northern gate where they search the chest to obtain some crystalline disks. The player returned to Golrie and talks about the anti-illusion device. He will mention a tunnel in the eastern part of the cave.
To start the Prisoner of Glouphrie, talk with Golrie. He will inform the player that what he had been using as a bookmark for several years was in fact a note from his long lost grandfather, Bolrie. He asks the player for their help and suggests that they take his mother, Golrana, with them. Golrie tells the player that she can be found on the surface inside the Tree Gnome Village and teleports the player directly to her.
Once at the surface, Golrie will introduce the player to his mother, Golrana. He tells her that the player was using the letter as a bookmark for a few years before they realised that it was really a letter from Bolrie. Golrana becomes excited and snatches the letter from Golrie to read it for herself. Eager for the chance to rescue her father, Golrana is resolved to go save him by herself, but after a little bit of prompting, she will allow the player to accompany her as her "questing apprentice". Golrana tells the player to meet her north of the observatory and south of the lava fields when they are ready.
Once the player and Golrana return at the Tree Gnome Village, Bolrie and his brother, King Bolren, are reunited, and Golrie is finally able to meet his grandfather for the first time.
When speaking to Golrie during the Path of Glouphrie about finding the storeroom key, he muses about how all useful things are found in chests. When in a temple the other day, he found that someone had conveniently put all the keys to the locked doors in the chest in that room, but the chests were hard to reach. This is a reference to The Legend of Zelda series.
After the Prisoner of Glouphrie, the player can talk to Golrie about his grandfather, Bolrie. The player talks to him about how his mum is training to be a tree whisperer and that she's full of surprises. Golrie replies with "Yeah? Well, your mum...". This is a lighthearted reference to "Yo mamma" jokes.