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Nial's throwing axe is a quest item obtained as a drop from defeating Nial Swiftfling during the Glorious Memories quest. It is made out of rune and has a unique shape that is very different from standard rune thrownaxe, which tend to resemble miniature rune battleaxes.
It is given to Freygerd, Nial's wife, on Jatizso after the player kills Nial, and afterwards Freygerd decides to move back to Neitiznot.