Cursor modes

There are two special cursor modes to make using tools and placing objects more convenient.

Auto Select
True to its name this will automatically select an item to use, depending on where the cursor is pointed. The item need not be in your hot bar. By default Auto Select is activated by pressing Shift on PC, R3 on PS3, or pressing down the right thumbstick on Xbox 360. A Flare Gun without Flares won't be selected. Nor will other light sources such as candles. If more than one item is equally appropriate it will normally select the first one in your inventory. And if the preferred item is unavailable it will usually fall back to something else.

Smart Cursor
Somewhat the reverse of Auto Select, this mode selects a target based on your active item. By default it is toggled on and off by pressing Ctrl. There is an option in General Settings to make it last only while the key is held down. Smart Cursor mode is indicated by a slightly wider cursor, and the tile targeted is shown with a yellow box. Using Smart Cursor with a multi-function tool like Drax or a Hamaxe may have unexpected results. These tools will behave as an axe preferentially, meaning they always target a tree if one is in range.