Larvae (singular: larva) are the hideous wormlike souls of evil people in the Lower Planes. They're found mostly in the Gray Waste; in Baator and the Abyss they evolve quickly into Nupperibos and Manes, respectively.
Larvae are used by Tanar'ri, Baatezu, and Yugoloths to create Quasits, Imps, and Nalgs (respectively). In the Gray Waste they're thought to evolve into Hordlings eventually; they're also a part of the Night Hag reproductive cycle. Liches and other evil spellcasters use them as fuel.
Night hags are the primary dealers in larvae, and have the choicest selection.
Sources:
Planescape Monstrous Compendium: Volume I
Faces of Evil: The Fiends
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