During your playthrough, you will often encounter various moral dilemmas, such as whether or not to free the Pixie in Baldur's Gate 3. This seems like an innocent choice, you could just ignore it and continue your journey in the Shadow Lands. However, the Shadow Curse makes exploration difficult. Even if you have the Moonlantern, you can always find a better way to get around. But if there is one, what is the price you pay for it? To get that answer, you will have to decide whether or not to free the Pixie from the lamp in BG3.
Release Pixie or Keep Moonlantern | Baldur's Gate 3
Ideally, you should free the Pixie from the Moonlantern. There is always the option to keep her captive and release her later. That’s fine if you feel like it, but freeing her has an advantage. Here’s what happens in all situations:
The only downside to letting her go is that you'll need a new light source if you want to reveal Shadows or Wraiths.
By holding her captive, you can use the Moonlantern as you have been doing up until now. Since it's a light source, you can easily reveal Shadows and Wraiths. But it keeps your primary hand busy. And your party members will also need to be closer to you for the lamp.