1.0.6


 * It was a large update in terms of new mechanics and balancing. It also added a lot of decorative (and some functional) furniture.

New items

 * Ale
 * Barrel
 * Bathtub
 * Bench
 * Blue Banner
 * Bookcase
 * Bowl
 * Bowl of Soup
 * Candelabra
 * Chinese Lantern
 * Cooking Pot
 * Dresser
 * Goblin Battle Standard
 * Golden Key
 * Grandfather Clock
 * Green Banner
 * Jungle Spores
 * Keg
 * Lamp Post
 * Loom
 * Mug
 * Obsidian Brick Wall
 * Piano
 * Pink Vase
 * Red Banner
 * Safe
 * Shadow Chest
 * Shadow Key
 * Skull Lantern
 * Statue
 * Tattered Cloth
 * Throne
 * Tiki Torch
 * Toilet
 * Trash Can
 * Yellow Banner

New enemies

 * Blazing Wheel
 * Dungeon Slime
 * Goblin Scout
 * Spike Ball

New features

 * Critical Hits - There is now a small chance you will do more damage to an enemy.
 * Damage Types - Damage is now separated into Melee, Ranged and Magic damages. These will be used going forward for a few different systems, such as buffs, de-buffs. Items will list what kind of damage they do in their tool-tip so you know what will be affected by what buff.


 * Trash Can slot. The slot is located on the bottom right of the Inventory. Placing an item here will destroy it, however the item will be saved in memory until another item is destroyed, allowing you to retrieve it if you wish. Shift-clicking an item will move it to the Trash Can slot.
 * There are now Loot All, Deposit All, and Quick Stack functions when using a storage item.
 * Hotbar slots now show their respective shortcut keys.
 * Right clicking on an accessory or a piece of armor in your inventory will auto-equip it.
 * It is no longer possible to drop items through the spaces between boxes in the inventory.
 * Some Tools (primarily pickaxes) now give you an idea in their tool-tip of what they can mine, eg. "Can mine Meteorite".
 * There are now four ammo slots. Ammo may be placed here to de-clutter your inventory. Weapons will take ammo from these slots first, and will then take from any in the inventory after they are empty.
 * Hotbar slots that have a ranged weapon on them will show the current used ammo count on them.
 * There is now a lock toggle in your inventory, that when clicked, will not allow you to change slots via clicking. Instead, you must use the 0-9 hotkeys or the mouse wheel to change slots.
 * Hotkeys can now be used to change selected item when the inventory is open.
 * Shops now sell items back to you. Shift-clicking items will automatically sell them.
 * You can now clear and cancel your chat message by hitting escape.


 * There is now an option to disable pickup text.
 * There is now a hotkey to use the Grappling Hook/Ivy Whip (default hotkey is E).


 * You now regeneration health depending on the last time you received damage. The longer since you were damaged, the quicker you regenerate.
 * Mana now recharges depending when how much you have in your mana pool. The more mana you currently have, the faster it recharges. You also recharge faster when standing still compared to when moving.
 * There are now 3 difficulty modes that are set when creating a character.
 * Softcore - Drop coins on death, keep max health and mana values.
 * Mediumcore - Drop all items on death, keep max health and mana values.
 * Hardcore - Drops all items and deletes your character on death, requiring you to start a new character. On death you will become a Ghost that can not interact with the world until you log out.
 * Placing background walls is more simple, as 1 block holes are automatically filled in.


 * Added 19 new hairstyles.
 * You can now choose to have a Male/Female character voice.
 * When choosing your hairstyle, you may now right click to cycle through the hair selections backwards.


 * Added several new randomized game subtitle captions which show up next to the game title in Windowed mode.


 * The Corruption now has new music.
 * There are new sounds for the following actions/events:
 * when initiating a conversation to an NPC
 * when Mana fully recharges (also shows a purple sparkle around the player)
 * when using Water Bolt, Flamelash, and Flower of Fire
 * when starting to drown
 * Some sounds have a randomizing pitch change (like sword swinging), to make them have more variance.

Changes

 * Wooden Tables, Doors and Workbenches now have a new appearance.
 * The price of Glowsticks has been reduced, and they now give off more light.
 * Coins now leave a sparkle trail while moving.
 * Jungle Rose is now a rarer drop and no longer used to craft.
 * Jungle Spores now replace Jungle Roses in crafting recipes.
 * Grappling Hooks and Ivy Whips can no longer be spam shot; you must now wait until your previous shot lands or returns before you can throw another.
 * Suspicious Looking Eyes will now sometimes be found in Chests.
 * Flamelash, Sunfury, and Flower of Fire are no longer dropped; they are now found in Shadow Chests in The Underworld.
 * Ash and Mud no longer fall due to gravity when placed or destroyed.
 * Hellstone no longer produces light and is more rare. it also now spawns lava when mined, but only in The Underworld.
 * Cacti no longer cause knockback making running through the Desert less of a hassle.
 * Healing potions now heal for less, and now give the player the Potion Sickness debuff upon consumption.
 * Flails now have a different mechanic. They do not return until you release the mouse button, and can be swung around by moving.
 * All placed background walls are now suitable as materials for building a house (even Dirt and Dungeon Walls).
 * Two of the same type of accessories may no longer be equipped at once.
 * Fish Bowl must be crafted with Bottled Water, not just an empty Bottle.
 * The following Armor have had their stats changed to suit various playing styles:
 * Meteor armor
 * Molten armor
 * Shadow armor
 * Necro armor
 * Jungle armor
 * Flower of Fire now does more damage, and costs more mana.
 * Band of Starpower now adds 20 mana to your maximum, and no longer adds mana regeneration.
 * Orb of Light now moves slower, emits 35% less light, and is now listed as a buff that you can remove if you so desire and also know its remaining duration.
 * Magic Missile is now quicker and is launched when you release the mouse button, rather than disappearing.
 * Flamelash is launched when you release the mouse button, rather than disappearing.
 * Meteor armor and Molten armor no longer glow.
 * Starfury now does a bit more damage, requires more mana, and now works underground. If a star is spawned inside a block, it will be able to travel until it reaches open space and then becomes solid, colliding with the next block it hits.
 * The Minishark now has a 33% chance of not consuming any ammo. This is to reduce its high rate of ammo consumption.
 * Flintlock Pistols and Muskets now provide more damage.
 * The mana bar is now blue, and text for gaining health is now green.
 * "Misc" in the Character Creation menu has been renamed "Shoes".
 * Optimized "Finding Tile Frames" to allow worlds to load faster.
 * More Gems spawn in the Underground Jungle.
 * Underworld houses now spawn differently. They can rarely spawn as all Obsidian Brick, and they can now get really tall.
 * Underground Jungles now have a Mud Wall background.
 * Dungeons should no longer spawn in the Ocean.
 * Deserts now spawn slightly further away from spawn.
 * Dungeons now spawn with more Spikes and less lighting.
 * Clumps of Ash in The Underworld is now filled with more lava pockets, making mining Hellstone more of a challenge.
 * Some items no longer spawn in Dungeon as these were meant for non-dungeon areas.
 * Hotkeys for Mana and Healing Potions now work correctly with Rejuvenation potions.
 * Interface slots are now colored differently:
 * Inventory slots are blue.
 * Equipment slots are green.
 * Crafting menu slots are purple.
 * Shop slots are brown.
 * Piggy Bank and Safe slots are pink.
 * Newly obtained items will now be placed starting in the bottom right of your inventory rather than the top left.
 * Hammers and axes now destroy blocks faster. Hammers also destroy walls about twice as fast as other objects.
 * Cobwebs will now be destroyed when you get tangled up amongst them.
 * Night's Edge and Dark Lance now have a new sprite.

Bug fixes

 * Bottled Water can no longer be crafted by standing near lava.
 * Night Owl Potion now works correctly.
 * Piggy Banks should no longer float when the ground beneath the table it is on is removed from beneath them.
 * Melee speed increase items are now calculated correctly, and deal more damage.
 * Cacti no longer destroy blocks as they grow.
 * Corrected some spelling errors and also the placement of ‘%’ in some potion tool-tips.

Terraria Wiki notes

 * Many potions had their duration increased from 2 minutes to 5 minutes.