Jack 'O Lantern

The Jack 'O Lantern is a new item added in 1.2.1. It emits a small amount of light and the texture of it may be changed as time goes on.

To make this you need the following items:

6 Pumpkins, these are found all over the surface of Terraria but if you are struggling to find them you are better off making a farm, this could also help you with mushrooms since they will be able to grow.

1 Torch

You are able to craft this at a workbench.