Sail to great fish isle and speak to the postman, then sail to windfall island. Go to the back of the shop with the bomb on its sign, climb the vines and crawl through the small space. A scene will start in it one of the pirates will say the password ("swabbies" or "Schooner") over and over again. Go to the pirate ship and say the password in the pirate ship; you must do a harder version of Niko's test. You get bombs for completing it.
Sail to the back of Outset island and destroy the wall with your bombs. However, it gets tricky because of the large whirlpool around the wall. You'll have to aim carefully at the wall and avoid getting sucked into the whirlpool. After a large number of bombs strike the wall, it will collapse, and the whirpool will disappear. This will allow you to get into Jabun's lair, which you enter immediately.
Upon entering Jabun's lair, Jabun emerges and speaks with the King of Red Lions. His fears of the evils that have surfaced have made him reluctant to give Nayru's Pearl to Link, seeing that his courage hasn't been tested. However, he hands it over nonetheless.