Odd bird seed is a quest item used in the Eagles' Peak quest. It is found inside some caves under Eagles Peak mountain and is used to navigate a small maze containing statues of eagles. It can be obtained even after the quest.
Placing the bird seed at the appropriate locations will cause the statues to move, allowing the player to access different parts of the maze. At the end of the maze the player obtains a golden feather which, along with a bronze feather and a silver feather, obtained earlier in the quest, is used to open a locked door that leads deeper into the caves.