Crafting is a game mechanic that allows the player to create new items from a specific combination of existing items. One of the most unique things about Vintage Story is the number of different crafting methods available to the player.
Grid based crafting is available at the beginning of the game by pressing the 'E' key and laying out items in a specific pattern in the grid on the right side of the screen. A full list of grid crafting recipes can be found here: Crafting Recipes.
Knapping is pretty simple, just take two pieces of either flint or rock and hold left Shift to sneak and right click on a solid block. This opens a small dialog where you can select what you want to craft. Use the second flint or rock, to chip away all voxels marked in orange. Don't worry about making mistakes, the game prevents you from breaking the parts you need.
Clay forming is a crafting method that allows the player to place tiny cubes of clay to form a shape. To access the crafting menu you need to hold clay in your hand and press Shift+Right click while pointing at the top of a block. Once you do this, the clay forming recipe dialog appears. Select the recipe you want to create. Now you will be presented with a grid. You need to fill in the green blocks with clay. If there is a space with no green box then you need to clear the clay out of that spot. Pressing 'G' will make the player sit down and this is very helpful when clay forming.
Most items made by clay forming must be burned in a firepit before use. Burned items turn into a dark color and have "burned" added to their name.
Alloy crafting involves smelting metal down to a liquid form, and then combining it in such a way to form new metals.
Copper and bronze can be cast into ingot or tool molds to make items. Many other metals (such as lead) can be cast into ingot molds.
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Smithing is a powerful and enjoyable way to form metal ingots into tools.
To start smithing, you must first add fuel to the forge by holding shift + right mouse click, then add your ingot in the same way. To ignite the forge, shift + right click it with a torch. Once the metal is over 60% its melting point it can be worked. Take it from the forge (right click) and place it on the anvil (shift + right click). This will open up a dialog allowing you to choose what to tool/weapon to craft.
Your goal is now to fill in the empty blue squares with metal. Hit 'F' with a hammer in your hand to see your tool modes. The first mode spreads metal in all directions, the next 4 in a single direction and the last one removes a piece of metal. If your work item cools down too much you will need to reheat it on the forge.
If you run out of metal while forging an item you will need to add another ingot. Place another hot ingot on top of the work item for refilling.
Here is a video of a complete smithing process