Yes, you need to defeat him in order to progress, and he drops some pretty useful stuff.
Edit: And he drops beetle husks, which you can use to craft armor.
yeah i know but in the 3ds version golem is technically the last boss, (excluding events like Frost Moon.) I also already have the Picksaw, which is about the only good thing he drops.
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Edit: And he drops beetle husks, which you can use to craft armor.