GHOSTS are valuable workers in Wooden Ocean. They are very similar to fairies in Breath of Fire 3 and live in the Ghost Town, which should be easy to find at the start of the game. They reproduce based on Happiness, which will eventually increase through the police station, construction and museum, as well as occasional opportunities such as the bar. They can also die when researching Tech, but this is a bug.

The fastest way to increase your ghosts is to find them in the wild. Considering the massive exploration in Wooden Ocean, this is very much worthy of a guide. You will normally not be able to collect any ghosts before getting your party together (finishing chapter 1), which is a point you can skip to at the start of the game.

(Currently, this will not be separated into sections as it might be a hassle and I do not have many locations yet anyway.)

First ghost location - After you exit the well from the Catacombs at the end of Chapter 1, the ghost will be on that map, in the bottom-right/southeast.

South of Divine Tower - There is a small map directly south of Divine Tower which is a road with a small section of forest to the left and the right of it. Just go right and you will see it.

Hunter's Sewers - In the Hunters' Base, there is a stairway into the Sewers. It is a bit hidden in the upper middle room. Go to the next map immediately south and then go west then north on the next map.

South of the Caves Crystal/Boss - This is impossible to miss if you are following the story normally.

Succubus Hunting - After completing the quest, the a ghost will spawn. (Check Southern Katis for this quest if you are stuck.)

Island of Bronze - Take the first turn into the center and you will find it.

Temple of Bronze - You will find ghosts in Puzzle Piece locked rooms.

Red Templle - You will find ghosts in Demonic Shard locked buildings.

Library - first floor, bottom right.

Psuedo Hell - Area south of the entrance, to the left.

Ifrit's Palace - Go right until the first wide open area, where the ghost is.

Ifrit's Room - Two ghosts for beating Ifrit (along with the Hotel Key).

Caves - By a fire and pentagram. Left path from Deep Catacombs entrance.

Divine Tower 6th Floor

Left of the stairwell to Frozen Cavern in the doll area.

Frozen Cavern - North of Abomination/East of Caves entrance.