Lyse suggests that you return to the House of the Fierce to find out what more needs to be done.
This quest is available if you have completed the quest Broken Steel, Broken Men.
Starting the Quest
Talk to Lyse in Yanxia to begin the quest.
Search the House of the Fierce
Teleport to the House of the Fierce, or go north to the pond north of Namai and swim to the House of the Fierce entrance. Go to each quest icon on the map to talk to Kaidate, Motojiro, and Haname.
Speak with Hien
Go to the quest icon on the map and talk to Hien.
Accompany Hien to Monzen
Go east through the archway, then if you have unlocked flying, you can fly upward through the opening, or if not, you can go northeast from the aetheryte and through the doorway. Go west to where the orange arrow is pointing in the minimap. Talk to Hien to proceed.
Go northwest to the quest icon on the map. Talk to Hien to proceed.
Search the Ruins
Go southwest to the orange circle on the map. Go to the southeast edge of the circle and check on the sparkling Sheathed Katana.
Present the Katana
Go northwest to the quest icon on the map and talk to Hien to hand over the Sheathed Katana and complete the quest. There will be a cutscene.
Next Main Scenario Quest
After you complete the quest, talk to Hien to accept the next quest: On the Eve of Destiny.