The Goblin and the Empty Chair by Mem Fox, illustrated by Leo and Diane Dillon

From chapters.ca:
In a time long past, in a land far away, a family has suffered an unspeakable loss. But a lonely goblin has been watching. And he knows what to do to help them heal. From internationally acclaimed picture book masters Mem Fox and Leo and Diane Dillon, here is a rich and moving original fairy tale about family, friendship, and the power compassion has to unite us all.