While in Teeheeti, one of the traveling merchants has developed a fear of traveling. His wife is at her wits' end.
This errand is available after defeating the Royal Jelly in the Fairyground.
Near the start of the path leading to the Fairy Godmother is the merchant couple you first met in Castaway Cove. Looks like the fellow is lacking some courage. One of the customers of the octopus diner to the south has more than enough to spare. Return to the man and talk to him again. When your Spell Menu comes up, choose Give Heart, then courage to restore it for him.