1.0.5

New items

 * Aglet
 * Antlion Mandible
 * Archery Potion
 * Battle Potion
 * Blinkroot Seeds
 * Blinkroot
 * Blowpipe
 * Bottled Water
 * Cactus
 * Coral
 * Dark Lance
 * Daybloom Seeds
 * Daybloom
 * Deathweed Seeds
 * Deathweed
 * Defense Potion
 * Demon Scythe
 * Diving Helmet
 * Doctor's Suit
 * Familiar clothes
 * Featherfall Potion
 * Feather
 * Fireblossom Seeds
 * Fireblossom
 * Gills Potion
 * Glowstick
 * Gold Chest
 * Gravitation Potion
 * Guide Voodoo Doll
 * Hellfire Arrow
 * Hunter Potion
 * Illegal Gun Parts
 * Invisibility Potion
 * Ironskin Potion
 * Magic Power Potion
 * Mana Regeneration Potion
 * Mime Mask
 * Moonglow Seeds
 * Moonglow
 * Night Owl Potion
 * Night's Edge
 * Obsidian Skin Potion
 * Poison Knife
 * Regeneration Potion
 * Sandgun
 * Seed (Ammo for Blowpipe)
 * Shark Fin
 * Shine Potion
 * Silver Bullet
 * Spear
 * Spelunker Potion
 * Sticky Glowstick
 * Swiftness Potion
 * Thorns Potion
 * Throwing Knife
 * Tombstone
 * Trident
 * Waterleaf Seeds
 * Waterleaf
 * Water Walking Potion
 * Wooden Boomerang

New enemies

 * Antlion
 * Blue Jellyfish
 * Crab
 * Demon
 * Hellbat
 * Lava Slime
 * Pink Jellyfish
 * Shark
 * Voodoo Demon
 * Vulture

New features

 * Buffs - activated by consuming Buff Potions to grant the player a variety of bonuses and abilities.

Changes

 * EOW and Devourers will no longer chase players outside of corruption.
 * Changed the way Worm enemies spawn.
 * Bats, Hornets, and Demon Eyes no longer enter water.
 * Slimes now float in water.
 * Only one giant slime will appear at a time.
 * The Guide now seems quite knowledgeable in what an item can be made into if you show it to him.
 * NPC shops now sell some items on certain nights, or after certain events.
 * Devourers should no longer gain random other enemies as its head.
 * Bats now have a death sound effect.
 * Talking to the Old Man at night will give the player a warning now before summoning the dungeon boss.
 * Entering the dungeon before defeating Skeletron now spawns a new NPC (Dungeon Guardian) instead of Skeletron’s head. This should fix several issues with that event.
 * Enemy coin drops have been adjusted.
 * Man Eaters and Snatchers are no longer effected by knockback and can attack through walls.
 * Eater of Souls’ and Hornet AI has been changed.
 * Enemies now take up different amount of slots depending on AI style and strength. This will help balance conditions when there are lots of strong monsters spawned at once, such as Fire Imps and Bone Serpents.
 * Green slimes have been weakened so that starting players can deal with them more easily.
 * Slimes and Flying enemies no longer make a splash sound when hitting water.
 * Items of “Blue Rarity” or higher no longer burn up in lava.
 * Burning Skull has been renamed to Cursed Skull, and given different AI.
 * Enemy caster’s have had their rate of fire slowed down.
 * Meteor Heads have less health, do more damage, and move slower.
 * There are now slight size variations to the Eater of Souls, Hornets and the Angry Bones.
 * Skeletron has less defense and health.
 * The Silver Shortswords recipe has been corrected, it is now craftable.
 * Destroying a placed sign while you are reading it will no longer cause your character to become frozen.
 * Rocket Boots no longer require mana. They will provide lift for 1 second and recharge every time the player touches the ground or uses grapple. Lift speed has been slightly increased to offset loss of long flights. This makes the boots more viable for caster characters.
 * The explosion animation for Bombs is now correctly displayed in multiplayer.
 * There is now a message pop-up when the player receives an item.
 * Filled Buckets may no longer be emptied into solid ground.
 * Pots in the underworld now have a chance to drop hellfire arrows.
 * Handgun and Phoenix Blaster have been reduced in size.
 * Lowered the knockback and the damage of the Muramasa.
 * Decreased the damage of the Sunfury.
 * Reduced the damage of the Blue Moon.
 * Flintlock Pistol and Musket have increased damage.
 * Only normal Trees drop Acorns.
 * Falling Sand clumps are no longer carried by Magic Missiles/Flamelash.
 * Jungle armor is no longer a drop. It is a craftable set.
 * Magic Mirror now requires 20 mana to be used.
 * Harpoon and Flails now correctly show the player’s arm animation.
 * The Arms Dealer will sell unholy arrows at night after the Eater of Worlds has been defeated.
 * Space Gun does more damage, but only penetrates 2 enemies.
 * The Hellstone Brick recipe now requires a Stone Block instead of an Iron Pickaxe.
 * The Suspicious Looking Eye can now be crafted with 6 Lenses instead of 10.
 * Spam detection is less aggressive.
 * Increase multiplayer security.
 * Added an option to enable additional cheat protection for servers.
 * Servers now hibernate when no players are connected.
 * Mud and ash now have a chance to fall like sand when struck.
 * World update rate has been reduced slightly.
 * Water now evaporates when it reaches the underworld.
 * Slowed the rate of plant growth.
 * Hardcore is now an option when creating a new player. Hardcore players are gone for good after dying.
 * The Underground Jungle now has its own music track.
 * Vines that refused to grow longer than 1 tile in length while underwater, will now grow correctly.
 * Pot graphic was brightened to make it more visible.
 * Plants growing out of a clay pot can no longer be cut with a weapon. The new alchemy plants can be grown in these pots.
 * Gems, ore, and gold chests now have a sparkle effect.
 * Giant glowing mushrooms will now grow back over time.
 * The player now starts out with a copper shortsword.
 * Dungeon bricks and walls have had their brightness reduced.
 * Upon death, a more specific death message will appear for other players, so they know how you died.
 * The crafting and armor interface text will fade out when an item tooltip is in front of it.
 * The Hot Bar now shows the name of the selected item.
 * PVP now requires 5 seconds between Activation and Deactivation and visa versa to prevent PVP spam. The same cooldown is in effect for Team Changing as well.
 * Added hotkeys for quickly drinking healing, mana, and buff potions. The healing/mana potion you use is based on the same principle arrows are. Topleft most item first. The buff potions are all used at once.
 * Defense totals are now shown in your inventory.
 * Tweaked the way sand is created during world gen. (Requires new world.)
 * Oceans are now slightly larger and generation layout has been improved. (Requires new world.)
 * Cactus now grow on sand.
 * Coral now grows in the ocean.
 * Chests can now spawn near the surface of the world. They will contain treasure that new players may find useful. (Requires new world.)
 * Chests and pots now contain loot based on the level they spawn in. (Requires new world.)
 * Gold chests will now spawn in some parts of the world. (Requires new world.)
 * Corrupt chasms have less of a chance to spawn on jungles. They also now have a cave connecting most of the chasms. (Requires new world).
 * Traces of demonite are created during world gen. (Requires new world).
 * Surface jungles have been enlarged, and will override deserts. (Requires new world).

Bug fixes

 * The Nurse now charges the correct amount for healing.
 * Blood Moons now stop correctly if time is changed to day by the server.
 * Fixed a bug that could crash the server when the max amount of clients are connected.
 * Fish are no longer upside-down when out of water.
 * Holding right click on an empty space in the inventory will no longer make a sound effect as if something was there to be picked up.
 * Corrected some spelling and grammar mistakes.
 * Lighting code has been optimized to increase performance.
 * Torches and candles no longer work when wet.

Terraria Wiki notes

 * Axes have had their power and damage adjusted.
 * Crafting recipe of Meteor Shot changed. Now also requires Musket Balls, and only creates 25 shots per Meteorite Bar. This was an undocumented change.
 * Crafting recipe of Unholy Arrow changed. You can now forge 3 Wooden Arrows into 3 Unholy Arrow per Worm Tooth (instead of only 2). This was an undocumented change; Spotted in version 1.0.5, may have come from earlier. (?)
 * Flaming Arrows no longer emit light when wet. This was an undocumented change; Spotted in version 1.0.5, may have come from earlier. (?)