Items and Magic
Candle: Allows you to see in the caves that are black. Located in Parappa Palace.
Hammer: Allows you to break through the big boulder road blocks. Located in the Death Mountain Area.
Handy Glove: Allows you to break through bricks in dungeons. Located in the Midoro Swamp Palace.
Boots: Allow you to walk over certain parts of the ocean. Located in the Maze Island Palace.
Raft: Allows you to cross the river. Located in the Island Palace.
Whistle: Kills the dreaded water devil and opens up the next palace for you. Located in the palace in the middle of the ocean.
Cross: Allows you to see enemies you normally couldn't. Located at the Three Eye Rocks secret palace.
Magic Key: Very handy. Allows you to open locked doors. It's a shame you don't get it any earlier. Located at the end of Hidden Kasuto.
Magic
Shield: Raises Link's life levels and reduces damage inflicted by the enemy by half. This magic is found in the town of Rauru.
Jump: Makes Link jump higher. This is found in Ruto, after you recover the trophy from the Tantari Desert
Life: This magic partially restores Link's life. You will get this when you find a lady's lost mirror. She lives in Saria
Fairy: This turns Link into a fairy. Very useful when you don't have a key... Find this in an 'abandoned' church in Mido
Fire: When this magic is used, Link's sword will shoot fire. There's a lady in Nabooru who needs water. After you give it to her, she'll give you Fire.
Reflect: This magic will strengthen a shield. Go to Darunia and talk to an old lady. She will ask you to rescue the kidnapped child on the island...
Spell: Try it, it has strange effects on some enemies. Find this in the Hidden town of Kasuto
Thunder: This is the most powerful magic. It will damage all enemies on the screen. Find this in the Dead town of Kasuto.