Nibbled Bone

is a quest item that can only be found once you have the Search for Missing Bone quest. You can only carry one of these items with you at a time.

Found
This item has a chance to be found when selecting the various Dirt Pile's that can be found in some areas of Tanglemire. You may need to search between 1 and 24 of the Dirt Piles before you will find this item.