The Jade Figurine is part of The Golden Bird quest. It is a unique item that is dropped when you kill the first random Unique Monster you encounter after leaving the Kurast Docks for the first time. If You want a guaranteed drop, Kill the unique spider in the Spider Cavern while obtaining Khalim's Eye from the Chest .
Apparently Meshif was collecting a set of figurines of which this Jade Fugurine was the last missing piece. It is unknown how it came into possession of a monster
Trivia[]
The jade figurine is intended to be a gimmick reference to the jade figurine treasure in one of the earliest computer games, Zork. This text-based adventure game was developed by Infocom, which was later bought by Activision.