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Has a house on the Ice Island of Vega. Around Christmas each year, he can be found in or near each major town, usually near the Depot.
Ab'Dendriel: Underground shops, near Shanar.
Ankrahmun: In the Tavern west from boat.
Carlin: At Dane's shop (underground), south west of depot.
Darashia: South of town, next to the Tavern.
Edron: Inside Castle, next to the Depot.
Farmine: In the Tavern west from the steamship.
Gray Beach: Inside the Depot.
Kazordoon: Jolly Axeman Tavern.
Liberty Bay: West of the depot.
Port Hope: Grassy area south of depot.
Rathleton: In the Grand Opera Café, west from depot.
Svargrond: West of depot.
Thais: At Frodo's shop, north east of depot.
Venore: Under main depot.
Yalahar: In the Tavern east from depot.
Only appears during Christmas time. Rumours say that if you are nice to him, he will give you a present. The present you receive is random.
You might receive:
10 Candy Canes +10 Snowballs
10 Candy Canes +1 Christmas Bundle
10 Candy Canes +1 Piggy Bank
1 Energy Ring +1 Dwarven Ring +1 Ring of Healing
1 Red Gem
1 Shiny Stone
1 Bullseye Potion +1 Mastermind Potion +1 Berserk Potion
1 Santa Doll
1 Violet Gem (semi-rare?)
1 Dracoyle Statue
1 Stuffed Dragon
1 Moon Backpack
Presents which are only given to a few lucky players:
1 Panda Teddy
1 Teddy Bear
1 Santa Teddy
1 Amulet of Loss
1 Dragon Claw
1 Ball Gown
1 Gold Ingot
1 Snowman Doll
1 Bear Doll
1 Soul Stone
Also, if your server successfully finished the Lightbearer event and you helped by lighting all 10 fire basins, you may ask him for a very special present. You will then receive the Blazebringer mount.
In previous years Santa Clauses were controlled by CipSoft employees, and could hurt you if you were foulmouthed. At that time he also gave away a larger variety of items. Back then Knightmare organized races to find Santa Claus, giving a Teddy Bear to the winner. Nowadays he only gives extremely lucky persons on any server the precious Teddy Bear.
During one year Santa gave better gifts in premium cities, but has since returned to his usual self, giving out random presents in every city.
See also: Santa/Presents