The Wolf can only be found in Grandma's house but on certain occasions. When Graham enters the house while he is in there, he needs to get out very fast before the Wolf climbs out of the bed and kills him. The Wolf hid the basket of goodies in Grandma's mailbox. the reasons why may never be known.
The Wolf cannot be defeated or killed in the game, so the player must exit the house otherwise the Wolf will come up to the player and kill him or her.