You go to the Eastern Palace to search for the first pendant.
Enter the Palace
Head straight up, lift the pot and step on the switch that was below it. The door will open; go through.
Kill all the jelly-like enemies and step on the switch (you can just see its outline near the middle of the bridge). Go through the door.
Jump down the ledge. From the other end of the room, evil black blobs are being shot in this direction. If they touch you, they hurt you. You have to run up the narrow hall, dodging the blobs. If you're unlucky, a giant blob will come by, meaning you have to take cover in one of the gaps in the walls to either side. Carefully make your way up the room past the volley of the blobs (ha) and before you go through the door above, head left and follow the path to some pots and a chest containing 100 rupees. Then go back above the blob gate and go up the stairs and through the door.
At the split, head left. Lift a pot and step on the switch beyond it, and go through the door.
The stalfos are hard to kill because when you swing their sword they jump backwards. You have to back them into a corner if you want to kill them. You can ignore these guys and go through the door at the bottom left.
Lift but don't throw the pot in the center of the room, and stay in the center. When the stalfos appears to your left, throw the pot at it to kill it. Go around lifting pots and killing stalfos with them until the doors open. Go through the north door.
Grab the chest for the compass, which tells you where the dungeon boss is when you view the map (press X), then go down the stairs and through the door.
The weird tile on the wall is a means of speaking to Sahasrahla telepathically. If you touch this one he says to use the treasure of this dungeon to kill armored enemies. I'll tell you what that means later. For now exit through the east door.
Stay away from the sleeping monster above, it's one of those armored monsters you can't kill without this dungeon's treasure. Go down and around where the big chest is (you can't open it without the big key), then exit right.
Go straight down in this room with the upper-level platform, up the stairs and through the door. IMMEDIATELY head right to avoid the bubbles (who will hurt you and deplete your magic), slash the jelly monster in the way, and step on the switch to make the door above you open. Go through.
It's dark in here and there are stalfos about, so be careful. The jar at the top along the right wall has a key under it, so get it and leave. IMMEDIATELY head down and continue along the path, killing the jellies to get to the exit in the west wall.
You're back in the room with the shooting blobs, but on a raised walkway. Go across to the next room.
In this room you must defeat all the jellies, the stalfos, and the eyegore. The best way to defeat the eyegore is to wake it up and throw a pot at its face. It dies with one hit. Otherwise you can wake it up and hit it with your sword a bunch of times until it dies. I recommend the first method. Once you've beaten all the monsters, the bubbles will come flying away from the pot they were circling. Be careful not to let one hit you. Pick up the pot and step on the switch below to reveal a chest containing the big key! Now exit through the north door, which you can open now that you have the big key. Be careful not to get hit by one of the bubbles flying around while you're above the altar.
Go down the stairs and push the higher block up, then go up and exit right.
Now you're in the room with the big chest, which you can now open! So open it to get the bow. You may already have some arrows, but if not, pick up the pots around to get some. Once you open the chest, four stalfos will fall from the ceiling and their heads will come flying at you. If you can, slash a stalfos's body before its head can come off and that's one less head to worry about.
While avoiding the heads, go around and up to the north wall, and up the stairs. Note that if you fall into one of the pots below, you enter a small area where there are fairies, which you can catch in your bottles, as well as a warp back to the last room. Go ahead and drop into the room, bottle the fairies, and warp back. A bottled fairy will revive you if you die in battle, and you can also let the fairy out to fill some of your hearts instantly.
Back in the room with the big chest, go up and through the big key door.
In this dark room there are cyclopses above, so don't go too far up or they'll wake up and start running after you. Before the cyclopses there are jellies, so go a little bit up and swing your sword to kill a few of them. Once you've dealt with most of the jellies, stay near the left or right side of one of the cyclopses and walk up to it to wake it up. If you do it right the other one will stay still. Get your bow and arrow ready and shoot the cyclops in the eye to kill it. Repeat on the other one. The one on the right will drop a key, grab it.
Go to the upper right of this room, get a pot out of your way and go through the door here. There are a bunch of rupees on the floor below, 18 rupees worth 5, meaning 90 in total. Avoid the bubbles and collect them, then leave the room the way you came in.
Go straight left and there's another door beyond the pot in the top left corner, this one locked. You got your key from the cyclops, so go on through.
Up here, avoid the bubbles. If you're in need of arrows, grab the top two pots. The bottom right hides a heart. The bottom left hides the switch that opens the door, so step on it and go through.
You want to kill the cyclopses one by one here, starting with the top and going down to the bottom. Carefully wake the top one, kill it, and continue downward. When they're all dead, you see they were each standing on what appears to be a switch. Only the bottom one is real, so step on it. The top pot holds arrows and the bottom holds a heart. Continue to the next room.
QUICKLY walk to the center of this room. Evil black blobs are flying everywhere, but the spot in the center is safe. There appear to be four switches here, but only the top left one is real, so carefully step on it when you have a clear shot, and get the heck out of this crazy room.
First kill the stalfos carefully, not waking up the red cyclops. Unfortunately this red cyclops can't be hurt by throwing a pot at it, so you must use arrows. Not only that, it takes two arrows to kill it. So carefully wake the cyclops and shoot its eye twice to kill it. The door will open. Go through.
Walk right into the middle of the square of jellies, swing your sword up, left, and right to kill them off quickly. Use your boomerang to get any rupees they leave behind, so as not to disturb the cyclopses just yet. You have two cyclopses to deal with, both red, and both very close to one another. There's no way to wake up just one without waking the other. When you're ready, wake them both and attempt to shoot one of them in the eye twice, getting out of the other's way as it comes after you. Keep waking them until they're beat. Go around and get all the pots for arrows (you'll need them) and hearts.
If you think you're ready for the boss fight, go up through the door.
These six guys are bigger, badder versions of the armos statues that come to life when you come near around the Eastern Palace. Stay in the bottom right corner, a little way to the left so you can shoot straight up and hit the knights as they circle around. First they go in a wide circle, then a small circle, and finally they line up along the top wall and charge you. Keep shooting arrows at them until they die. Each one takes three shots, and the last one that's left will turn red and chase after you and stomp you, so run out of its way and keep shooting it until it dies.
When you finish it, it will explode and leave behind a heart container, so grab it, then run to the middle of the room where the Pendant of Courage will fall into your hand. Your hearts and magic will be refilled and you'll end up at the palace entrance.