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Answer:

Dryads are mythological spirits who make their homes in trees.

Explanation:

1) correct spelling of spirts > spirits

2) Dryads is plural, so you need the pronoun to be 'their' not 'its'

3) I changed home> homes because presumably the dryads live in multiple homes, but  it could be argued that 'make their home' is an expression and is acceptable.  

4) I would not add a comma before the 'who' because in this sentence it seems that making their homes in trees is an essential part of defining who Dryads are.

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