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Old Insect Legs are common materials in Xenoblade Chronicles. They are dropped by three types of Insect Enemies and can be traded for.

Sources

Trade

NPC Area Affinity
Liliana Colony 9 3
Erik Colony 9 ☆4

Enemy drops

Enemy Area Rate
Cute CaterpileTephra Cave79.9 %
Prom SkeeterTephra Cave79.9 %
Eater CaterpileTephra Cave67.7 %