This rare creature from Nightopia sucks in the light and produces rings, which create Dash Power for NiGHTS. The Octopaw is harmless and very cowardly; it will run for its life as soon as it sees a human. If you chase it persistently, it will shoot ink at you.
NiGHTS will occasionally challenge a visitor to make a certain number of links while chasing Octopaw. These are called "Link Challenges".