Droalak is a ghost living in Port Phasmatys, who is interacted with during the Making History quest. During Making History's storyline, he has a wife, Melina, who cannot forgive him for leaving her. This domestic strife is resolved during the quest and she departs the physical plane.
If a player talks to him after finishing Making History, his soul will be set free and he will disappear from the game. Doing so is a requirement for obtaining the master quest cape.
Droalak's soul is set free after delivering the scroll to Jorral