Gem Bunnies

Gem Bunnies are harmless critters that can be caught with any Bug Net and do not normally interact with the player in any other way, except in that they can be killed by both players and enemies. They have 5 health and usually serve as ambient entities in Terraria.

Gem Bunnies spawn near Towns in the cavern layer and Gem Trees that can be planted with Gemcorns. Their Surface counterparts are.

Most naturally spawned Gem Bunnies can be caught with a Bug Net, and carried in the player's inventory (or placed in storage). If a squirrel caught with any Bug Net is taken from inventory and "used" (placed), it is again released into the environment at the cursor and behaves as usual.

The best way to spawn any gem squirrel is to make a town in the cavern layer. They tend to spawn around NPCs, especially town NPCs, but may also spawn near the Skeleton Merchant or any bound NPC.