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The Red Drifter wears red armor under a blue tunic, and wolf pelt cape. He appears in every location. He also has a chronic cough. Talking to him will update the game map with waypoints for keystones.
The Red Drifter first appears at the beginning of the game when he saves the Drifter from a shadowy monster. Talking to the townsfolk later reveals that he also saved them.
He mentions having found an object which sounds very much like the glowing white diamond the Drifter was looking for prior to being attacked.
His cloak and sword are obtainable later in the game and reduce the time before stamina recovery begins.