1.2.0.3

The patch notes listed below pertain to the Desktop version.
Added items are likely included in  Console version,  Old-gen console version,  Mobile version,  and Nintendo 3DS version as well. Bug fixes for Console, Old-gen, Mobile, and 3DS can be found in Console history, Old-gen history, Mobile history and 3DS history, respectively.

1.2.0.3
"Terraria 1.2.0.3"
Release date	October 9, 2013
Version chronology
← Previous	1.2.0.2
Next →	1.2.0.3.1

The 1.2.0.3 patch added many new features, fixed several bugs, and made several changes to game mechanics. The additions mainly consisted of Monster Banners and pieces of furniture.

New additions

• 87 new banners were added as drops from monsters
• Glass Furniture- Now craftable with glass
• Hive Furniture- Now craftable with crisp honey
• Steampunk Furniture- Now craftable with cogs
• Pirates will now randomly drop fancy gold furniture
• You can now craft more furniture out of wood with a sawmill (barstools, banquet tables, etc.)
• Lihzahrd Walls are now obtainable
• You can now craft living wood walls
• Added new friendly critters: Blue Jay, Cardinal, Squirrel, and Mouse
• Whoopee Cushion now has a higher drop rate
• You can now tinker a whoopie cushion with a cloud in a bottle

Bug fixes

• Dungeon guardian now does 1000 damage
• Chlorophyte Drill and Pickaxe can now mine Chlorophyte
• The Rod of Discord now properly drops
• The Uzi now has the correct drop rate
• Jungle enemies now have a small chance of spawning in a Hardmode jungle
• Moss hornets can now drop Bezoars
• You can no longer duplicate items with the merchant
• Snow particles will no longer spawn on backwalls
• Fixed a bug that would cause monsters to despawn on servers but not clients
• You can no longer duplicate items through reforge
• The Mummy Shirt now correctly shows the players hand
• The graphic for Pirate Pants has been fixed
• The Party Girl will now sell the Bubble Wand
• The Mushroom Spear can now be reforged
• The Heat Ray now uses mana
• The Leaf Blower now uses mana
• Marshmallows no longer duplicate (for real this time)
• The Frost Breastplate now correctly gives bonus based off the tooltip
• You can no longer sell money
• Orichalcum axe now requires an orichalcum anvil to craft
• Fixed an exploit that would crash servers and clients
• You can now attack the Clothier with the Clothier Voodoo doll equipped
• Purification powder now works on crimson ice
• Holy water now works on crimson
• Eclipses are no longer persistent between worlds
• Fixed switch duplication bug
• Fixed a bug that would cause tiles to be painted on multiplayer when they shouldn’t be
• Reduced the number of particles some items/spells create
• Slightly improved performance when a large number of particles are on screen
• Fixed a bug that would cause coins to disappear instead of converting into the next highest currency
• Lucky coin no longer drops coins from statue spawned monsters
• Bunny cannon will return to you when broken
• NPCs that require Plantera to be defeated to sell things now do so correctly in multiplayer
• King and Queen statues will correctly summon the new NPCs
• Typing before the password screen when hosting will no longer cause those keys to be the password
• Holding coins when dying will now correctly drop those as well
• Flame thrower now does ranged damage instead of magic
• Blue and Green Wrenches show the number of wire available
• You can now reforge the Book of Skulls
• Fixed several typos
• Fixed a bug that caused the music box to record instantly
• Green solution will now turn Mushroom Biomes back into Jungle
• Traps no longer trigger Spectre Armor (Sorry Hero)
• You can no longer create a slope or half tile under a Lihzahrd Altar
• People playing on small screens should no longer auto equip an item from a chest or pick it up
• Rocket Launcher will now drop off of the Skeleton Commando
• Goldfish will no longer drop pirate maps near the ocean
• The Eater’s Bone will now properly drop

Balance changes

• The defense of Spectre Armor has been slightly lowered
• The defense of Turtle Armor has been lowered
• The attack speed, damage, knockback, and life return of Vampire Knives has been lowered slightly
• Dungeon Spirit spawn chance has been lowered
• Increased the reach of Wrenches and Wire Cutters
• Hardmode Crimson, Corruption, and Hallow spread is now slowed after killing Plantera instead of any Mechanical Boss
• Slightly increased the chance for an eclipse to happen, but they will now only happen after killing a Mechanical Boss
• Hardmode Dungeon Monsters will now only spawn after Plantera has been defeated
• Coins will now auto stack when close to each other
• Shadowbeam Staff does less damage each time it hits something
• Spectre Armor does less healing each time the same projectile deals damage
• Piranha gun now does slightly more damage
• Pyramids are slightly more common