The monkey talisman is used for making greegrees. It can be bought for 1,000 coins from Tutab's Magical Market on Ape Atoll, or obtained for free from the Monkey Child. When combined with the corresponding bones of certain monkeys and taken to Zooknock, it can be made into a greegree.
During Monkey Madness, one of these is obtained from the Monkey Child. He asks for 20 bananas in exchange, but you only have to give him 5, because he can't count. To get another monkey talisman after that, talk to him again. First you will tell him that you lost it and he will start to cry. You can either log out of the game, or wait for around a minute (watch out for The Monkey's Aunt or use a greegree) and then he will cheer up, allowing you to take another one.
It is one of the ingredients used to make a monkey mind-control helmet, which in turn is used to obtain a mind-controlled monkey butler (Steve), a servant who never charges money for his services in your home.
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