Use the Salt when you are trying to catch the ghost with a hood in the cemetery. This is when you will have to confront Magistrate at the end of your quest in the Ghost Story island. When you get close to him, you’ll throw salt into his eyes with your handy salt shaker (that came in handy after all!) He’ll throw back his hood and exclaim that the salt stings his eyes. In the old saying, salt can help to take away the bad spirits.
How to Get the Salt
Leave the Gingerbread House. When you get outside, the man there will give you some salt. He says it’s helpful to ward spirits away.