The Shumi Village side quest is a short quest that you can do once you are able to reach the Shumi Village area on the northernmost continent.
You can reach the area after you have access to the mobile Balamb Garden ship or after you have obtained the Ragnarok. Click on either of the links below to go to those sections of the walkthrough / strategy guide:
18) Mobile Balamb Garden
The last scenes at Fisherman’s Horizon before you can explore the world with the Garden.
33) Ragnarok and Final Preparations
The final preparations for the end of the game and rescuing Rinoa from the Sorceress Memorial.
The rewards for completing this side quest are not great. They include both a 
Phoenix Pinion and a 
Status Guard which can be used to teach one of your Guardian Forces the 
ST-Def-Jx4 ability. The Phoenix Pinion can teach your characters how to summon the optional Guardian Force, Phoenix, who will sometimes randomly appear during battles to resurrect your characters.
Open up the mini-map by pressing the 
Button and use the arrow to navigate around until you locate Shumi Village on the northern continent near Trabia. Use the map below to help you locate it:
If you are navigating around in the mobile Balamb Garden ship, use the nearby beach to take the ship up onto the land nearby and then head in to the village.
This area outside of the village is referred to as the “Mystery Dome”. Continue walking towards the dome and go in through the entrance.
On the left side of the walkway you will see three Shumi Villagers all blocking access to a Draw Point. The villagers will charge you 5,000 gil to access the Draw Point which contains 
Ultima magic. Ultima magic is the strongest magic in the game but having a single ‘draw’ worth of it for 5,000 gil is not worth it.
Go through the doorway on the north and into the elevator which will take you to the village proper.
Exit the elevator once your team reaches the bottom and speak to the first Shumi Tribe member that you run into and it will tell you more about the secretive Shumi Village and its inhabitants.
Continue walking all the way to the left, skipping past all of the various houses and doorways, and go through the doorway on the house furthest to the left.
Go to the back of the house and speak with the Shumi standing there. This Shumi villager is known as the ‘Sculptor’. Squall will notice that he is sculpting Laguna Loire, the man who has appeared in all of the various dream sequences that the group members have witnessed.
After the Sculptor describes the Moombas and the evolution of Shumi people, leave the area and head into the house to the right of this one. Sitting on the bed is an issue of 
Timber Maniacs that you should pick up.
If you read this issue of Timber Maniacs before the Laguna Dream Sequence in Trabia Canyon, Ward will not participate in that sequence. This change to the dream sequence scene has no other impact though, but interesting to note how the story changes nonetheless.
Go one more screen to the right and go through the doorway (which was previously blocked by one of the Moombas). There is a Draw Point that you can grab just outside the house before you go in.
The Elder inside this house will tell Squall and his crew more about their interactions with Master Laguna. He will then ask Squall to assist the Sculptor with completing the sculpture of Laguna. Head back to the Sculptor’s house and speak with him.
The Sculptor will mention that he needs to research several stones that he would like for you to retrieve. Choose “Alright” when presented with the option; it’s time to start hunting down the stones!
Blue Stone
The Blue Stone that the Sculptor is referring to is the big blue rock that can be seen in the background of the room that the Sculptor is standing in. Examine the stone and then speak to the Sculptor again. If only finding the rest of them was this easy!
Wind Stone
The Wind Stone is way back near the entrance to Shumi Village (not up the elevator though). Examine the rock in between the two houses shown in the screenshot.
Life Stone
The Life Stone is located near the Elder’s house. Move towards the rocky cliff to the right of the house and climb the roots hanging down the cliff. Squall will automatically retrieve the stone when he gets near the top.
Shadow Stone
This is the most annoying stone to obtain. Head all the way back out of the village and take the elevator back up to the Mystery Dome. Just off to the right side of the screen, on the opposite side of where the Ultima Draw Point is, examine the ground to find this stone and then head back down into the village.
Water Stone
Head into the Artisan’s house, which is the one to the right of the Sculptor’s house. Look in the kitchen sink to find the Water Stone. Note that you can actually find a ‘fake’ Water Stone if you examine the pond out in front of the Sculptor’s house but the one in the sink is the real stone.
Return to the Sculptor’s house and he will reveal that he didn’t actually require the stones to complete the sculpture of Laguna. It turns out that this was all a scam to introduce Squall and his crew to the village and have them search around and get acquainted with the place.
Go back to the Elder’s house for another scene with the Elder and the Elder’s Attendant. After a short (and irritating cutscene), try to leave the house and you will receive a Phoenix Pinion.
This second part of the the Shumi Village side quest can also be completed as soon as you have completed the first, however you need to exit and re-enter the village in order to begin this next section. This includes going all the way up the elevator and going out to the main world before coming back in.
Re-enter the village and do the following:
You now need to travel back to Fishermans Horizon. If you have the mobile Balamb Garden you can simply re-dock the ship by touching Fishermans Horizon on the world map. If you have an airship you can land the airship in the middle of Fishermans Horizon (don’t walk along the bridge, that’s taking the long way unnecessarily!)
Go back to the Grease Monkey’s house which is the house near where your team fought BGH251F2 during the Galbadian invasion.
There is an issue of Timber Maniacs on the floor if you didn’t grab it the last time you visited this area.
The Grease Monkey will initiate a conversation when you enter his home, asking about your time in Shumi Village. Speak to him again and he will let you take the miniature Moomba wandering around the house back to Shumi Village.
Head back to Shumi Village and go back to the Artisan’s residence one more time. Speak to the Artisan, who will agree to go help the Attendant with the statue of Laguna.
There is a short dialogue scene when you leave the Artisan’s house involving the Master Fisherman from Fishermans Horizon. Travel back to the Elder’s house and speak to him one last time to receive your reward for completing this lengthy quest: a Status Guard.
Don’t be afraid to use this item on one of your Guardian Forces if they have an open space! This will allow that Guardian Force to junction a few more magics to your ST-Def-J ability (up to 4) which will make that character resistant or immune to those status effects. Very handy!
Time to get back to the regular game. Use the link below to return to the Mobile Balamb Garden section of the game if that’s where you were when you navigated to this page:
Alternatively, you are actually very close to the first Chocobo Forest location. If you are looking to complete all of the side quests in Final Fantasy VIII, consider completing the Chocobo Forest side quest next:
