Let me tell you about the moment everything changed for me in Palworld. I was wandering around the starting area, still trying to figure out why my little Lamball wouldn’t stop rolling into trees, when a friend mentioned something called Daedream’s Necklace. At first, I thought it was just another cosmetic trinket. Boy, was I wrong. This thing turned my boss fights from stressful slogs into downright hilarious shooting galleries. If you’re still struggling with those towering mammoths or that shadowy boss in the cave, sit tight. I’m about to share everything I’ve learned about crafting and using this ridiculously powerful item, straight from a regular player who’s been saved by it more times than I can count.

So, what exactly is this necklace? I remember thinking it sounded too good to be true. Daedream’s Necklace unlocks a partner skill called Dream Chaser. In plain English, it lets a Daedream float right next to your character and join the fight, even if you already have an active Pal out. Imagine you’ve got your beefy tank Pal soaking up damage, and suddenly a second, ghostly buddy appears and starts pelting enemies. It feels like cheating, but it’s completely intended. And honestly, this item stays useful deep into the late game. I’ve cleared some level 45+ dungeons still rocking a squad of Daedreams with this necklace, and they put in work.

Now, here’s the best part: you can craft this thing super early. I unlocked it around player level 10 without even trying to optimize. The first step is hitting Technology level 8 on your tech tree and spending a single Technology Point to learn the recipe. If you’ve been building a base and upgrading gear at all, you’ll reach level 8 in no time. Don’t overthink it – just grab gathering Pals and start automating wood and stone production, and you’ll zoom through the levels while you explore.

Before you can actually craft the necklace, you need a Pal Gear Workbench. This part confused me at first because I thought it was just another bench I already had. Nope! You unlock the workbench at Technology level 6, and here are the materials it asks for:

• 10 Paldium Fragments

• 30 Wood

• 2 Cloth

Wood is everywhere – I literally walked outside my base, punched a few trees, and had enough. Cloth gave me a tiny pause, but then I realized I could craft it from Wool, which my Lamball was already producing in the ranch. You can also get cloth as a drop from Azurobe or Felbat if you happen to be hunting those. Paldium Fragments were the one thing I had to look for specifically. They pop out of those blue-tinged rock nodes you see scattered around, and even ordinary stones have a small chance of giving you some. I popped a few nodes near the starting beach and had 10 in under two minutes.

With the workbench built and placed in my base (pro tip: put it near your storage for easy access), it was time to gather the necklace ingredients. Here’s what you’ll need:

• 10 Paldium Fragments

• 10 Fiber

• 5 Leather

By this point, Paldium Fragments were second nature – I knew exactly where my favorite mining spot was. Fiber was even easier. I just walked around the forest slapping bushes and trees, and it piled up. If you have a Hangyu, Hangyu Cryst, or a Hoocrates in your party or base, they’ll also produce Fiber passively. I kept a couple of Hangyus at the ranch just for this purpose.

Leather was the only material that made me sweat a little. The first piece I bought from a Wandering Merchant for 150 Coins because I wanted that instant gratification. But then I realized roughly a third of the Pals I was fighting dropped leather anyway. Foxparks, Rushoar, Eikthyrdeer – they all coughed it up pretty regularly. I took a detour to hunt some low-level creatures and came back to base with more leather than I needed. If you’re short on gold, just fight some common Pals; you’ll build your leather stockpile in the background while doing other things.

Once I had every material, I sprinted to my Pal Gear Workbench, heart racing like I was about to open a legendary chest. I selected the Daedream’s Necklace recipe, hit craft, and a second later it was in my inventory. The feeling was oddly triumphant for something that cost me mostly sticks and rocks. I equipped it immediately from my key items tab, and that’s when the real fun began.

Here’s how it actually works in battle. I had a Daedream in my party – more on catching those in a second – and as soon as I threw out my main Pal, the Daedream shimmered into existence right beside me. It didn’t take up a slot on the field the way a second Pal would; it just appeared as a floating turret. And the best part? It fires at whatever I’m attacking. So I could focus on dodging and commanding my tank, while this little purple ghost bombarded the boss from safety. The damage adds up fast, especially in early and mid-game content.

But wait, there’s a twist that I didn’t realize until I started experimenting. Dream Chaser activates for every Daedream in your party. That’s right – if you fill all your party slots with Daedreams, you’ll have your active Pal plus five floating Daedreams all shooting at once. I tried it against a mammorest boss around level 30, and we absolutely melted its health bar. It felt like I was leading a tiny army of nightmarish fireflies. The Devs clearly designed this as a stacking mechanic, and it’s glorious. Oh, and the spectral Daedreams? They’re completely immune to attacks. I watched boss stomps pass right through them while they kept raining down projectiles. I couldn’t stop laughing.

To use Daedream’s Necklace, you obviously need a Daedream in your team. Catching one is surprisingly simple, even in the very early game. Daedream is a nocturnal Pal, so your best bet is roaming around at night. The first one I found was at the starting plateau, just after the sun set. I saw floating purple wisps and thought I was hallucinating, but nope – there it was. You can sometimes spot them during the day, but they’re rarer. I recommend stocking up on basic Pal Spheres and heading out after dark. They’re not particularly tough to catch, and you can easily build a full team of them in a single game night. Just watch your back for other night creatures that might interrupt your throwing.

Now, in 2026, some players ask if this strategy still works, or if patches have changed anything. I can assure you, as of the latest update I’m playing on, Daedream’s Necklace remains one of the most slept-on power spikes in Palworld. Balancing tweaks have come and gone, but the core functionality – multi-Daedream ghost squad – still turns tough fights into playground bullying. The only thing that might change is the exact level requirements or crafting costs, so always double-check your current tech tree. But the method I’ve laid out has been stable for a long time.

My advice to any new player: make this necklace the second you hit Technology level 8. Grab a couple of Daedreams, keep them in your party, and suddenly every boss arena becomes your personal shooting range. I wish someone had told me about it before I spent twenty minutes kiting that first Chillet with a bow. So here I am, passing the knowledge on. Now go out there, craft that little purple amulet, and watch your enemies crumble under a hail of friendly fire.