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Professor Layton, Luke, Emmy, Desmond Sycamore and Aurora visit this location in search of an Azran Egg. After talking to Amanita, it is made clear that the tribe leader, Morel, has the egg around his neck. If someone can make the seemingly depressed leader laugh, then they will obtain the gift. In a bid to do this, Professor Layton and Luke dress up as a duck and cat, respectively, and produce animal noises. Their efforts are in vain as the leader remains emotionless. Professor Sycamore then suggests the possibility that he could cause the leader to laugh with some dry English humor. His long, arguably awful, joke does not cause Morel to laugh at all.
The group decides that they must investigate the source of Morel's grumpiness, and find out that the villagers have been attempting to get him to laugh for weeks to no avail. Checking around, Layton discovers that Morel has been having accidents more frequently, and deduces that Morel's eyesight has weakened, forcing him to navigate the village and jungle via his other limited senses. This was why none of the villagers's jokes worked, since they relied on Morel being able to see.
Using several local materials and enlisting the help of a few villagers, Layton fashions a set of novelty crystal spectacles, which not only restore Morel's eyesight but also distort it as a result of the crystal's refraction, causing everything to appear hilariously distorted. Bursting into laughter, Morel grants Layton with the Egg.
The name Phong Gi is likely a pun on the word "fungi". All local characters are also named after various types of mushroom, have mushroom-shaped hair, and occasionally make references to mushrooms in their speech.