The Newts are mysterious creatures you can encounter in the Dungeon. They are angry when you meet them and you can either try to Play the flute to appease them or Leave them be. Successfully playing the flute three times unlock the Bard Class.
To successfully play the flute, (Dex+d6) needs to be higher than a random number from 3 to 22. Succeeding gives you 1-30 exp and 1-20 gold, failure causes you to take 1-20 damage.