The Hobgoblin is a dummied monster in Final Fantasy III. They were meant to be a much more powerful version of the Goblin enemies found later in the game, but were ultimately left out. Where exactly they were meant to appear is unknown, though the Cave of Shadows and the cave in Falgabard are likely options.
Hobgoblin is a term typically applied in folktales to describe a friendly but troublesome creature of the Seelie Court. Hobgoblins seem to be small, hairy little men often found within human dwellings, doing odd jobs while the family is asleep. Often, the only compensation necessary in return is food. It is possible that the "hob" in their name comes from the hob, a part of the hearth meant for holding food or utensils. Hobgoblins are fond of practical jokes and seem able to shape-shift. Like all of the fae folk, hobgoblins are easily annoyed. The term "hobgoblin" has grown to mean a superficial object that is a source of (often imagined) fear or trouble.