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Terraria - Once monsters die, they shoot out items. These are (whenever possible) automatically sucked up into your inventory for automatic storage (Which can be accessed by pressing Esc) but when they aren't, you can find them lying on the ground.

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Once monsters die, they shoot out items. These are (whenever possible) automatically sucked up into your inventory for automatic storage (Which can be accessed by pressing Esc) but when they aren't, you can find them lying on the ground.