Pal following around question

[nub]

So I made the collar for Daedream and is following me around, but how do I put it back into the sphere?

[King of Amazons]

You don't. You instead have to remove it from your party.

[Derpykat5]

You put it in the Palbox. That's it. You can't put it away, You can't unequip the collar. You can't turn it off. It's a flaw in the game design that I hope gets fixed at some point.

[nub]

My Daedream accidentally attacked the second NPC so I had to kill her... does it matter if I kill her or not?

[Butt Trumpet]

pals dont accidentally attack things and no npcs respawn

[Derpykat5]

NPCs aren't required or even important at all - except maybe for the merchants but they are very hard to kill. Randomly attacking the merchants will spawn high level people with guns to come shoot you (very inaccurately), but one death and they'll leave you alone.