NPCs in Daggerfall come in two different types: flats (the stationary ones), which are found inside buildings and sometimes dungeons, and townspeople (the wandering ones) that can be found exploring the streets of various towns and cities, or strolling around the premises of farmsteads and manors.
See People for a list of NPCs who wield political power in the Iliac Bay region.
Interaction with flats is mostly limited to dialogue and quests; there is no way to kill or pickpocket these NPCs. However, when a quest requires you to kill an NPC with dialogue options (such as Baltham Greyman in Former Student Part I), the NPCs flat will be replaced with a (usually) human enemy once their dialogue is finished.
Townspeople are most commonly found in towns or cities, and serve the purpose of livening up the cityscape while also supplying you with the locations of various building and places, as well as information about various factions, people, and any recent news.
Unlike flats, townspeople can be killed or be pickpocketed. However, getting caught carrying out any of these actions will summon the town guards. As in Arena, townspeople will only stop for you when your weapon is sheathed.
Townspeople walking system is grid based, with there being various different types of tiles.
- Preferable (For paths or roads)
- Undesirable (For grass or dirt areas)
- No-Go (Inside buildings and other objects as well as water)