Cult of the Lamb is an action-adventure game where you play as a lamb that was brought for slaughter but was resurrected by an imprisoned deity and must repay their debt by building a cult following in their name.
As you progress through the game, you will need to receive several quests that require you to collect different items and one of them will be a quest called Beasts below the Wave. To complete this quest, you will need to catch a Squid, Octopus, Lobster and Crab for the Fisherman.
This guide will tell you how to find a Squid for this quest.
Squid Location In Cult Of The Lamb
How to start the Beasts Below the Wave quest

You will find the Fisherman waiting for you at the bottom right part of the dock in the Pilgrim Passage area. After you talk to him, you will unlock a small mini-game where you need to catch a fish.
The Fisherman will then ask you to catch some more sea creatures such as a Squid, Lobster, Octopus and Crab. Getting your hands on the Crab and Octopus is an easy task while it’s a bit harder to find the Lobster and the Squid.
Where to find the Squid?

In order to find the Squid, head over to the Lighthouse area and start fishing with your fishing rod. Since your chances of catching a Squid are purely based on luck, it doesn’t matter whether is day or night in the game
You will need to catch a medium-sized fish lurking in the water and hope that it turns out to be a Squid. Most of the time, you will receive more than one Squid so you can give one to the Fisherman and sell the other one.

After you catch all the sea creatures, you will be rewarded with a complete Holy Talisman set by the Fisherman on the docks.
You can then trade this for a new Fleece at the Church Altar and this Fleece can help you unlock new buffs, debuffs and mechanics in the game.

The Fisherman will also allow you to barter with him so you can purchase as well as sell fish to him to earn profits and feed your followers.
That’s it, now go ahead and catch a squid in the game!