The ghoul bone is an item on the Odd Old Man's wish list after the Rag and Bone Man quest. It is dropped by ghouls. After the quest is completed you can no longer obtain this as a drop. The bone must be put into a pot of vinegar and boiled to create a polished ghoul bone before giving it to the Odd Old Man.
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- For an exhaustive list of all known sources for this item, see here.