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In Legend of Zelda: Skyward Sword, there is a house in Skyloft which looks almost like a windmill and has a nest-like thing on top of it. I just got the flying bug thingie which I can throw and remote-control, and I can explore the nest finding two blue rupees and two green rupees, and a colorful thing I can't seem to pick up. What is this thing and what is the purpose of the nest?

Spolier tags appreciated if I'm going to learn about this naturally as the game progresses :-)

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You do run into it into the course of gameplay. It's roughly about 2/3rds of the way through, for a sidequest. It also fills in a spot in your inventory. That's about as detailed as I can get without spoilers, so details incoming!

After you get the clawshot, you can talk to the potion maker's husband during the night. He's awake trying to get the baby to sleep, and can't because a bird made off with the rattle. To get the rattle, you will need to clawshot up the floating islands (look for vines). At the top, find the nest, run off, and skydive onto it. You'll find the rattle in the nest, and can complete the quest.

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The nest has no big purpose except housing that colorful thing and being easy to hint at. The colorful thing is part of a side quest, so you won't automatically find out about it, but if you do the side quests, you will find out about it later in the game.

The colorful thing is a baby rattle. Bertie (the potion maker's husband) will eventually ask you to retrieve it for him. This mini quest is part of Batreaux's gratitude crystals side quest. To obtain it, you will to get onto the highest floating island above the waterfall using the clawshots and jump down into the nest.

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