From Guild Wars Wiki
Xien is attempting to steal the secrets from
Oola's Lab. You will face him several times on the first level. Bringing him to low health will cause him to disappear, except when you are near the dungeon gate, where he will die and give you the
dungeon key.
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- It is not actually possible to kill Xien. On your final encounter with him once he gets to 10 percent health he will become an ally, initiate dialogue and then die. As a result, he does not contribute to the Dwarven Raider blessing and does not trigger Boss Bounty.