The Iron Hammer is an early-game hammer, being stronger than the Copper Hammer and weaker than the Silver Hammer. Its counterpart for worlds containing Lead is the Lead Hammer, which is slightly stronger. Like all hammers, it is used to remove background walls and shape blocks.
The Iron Hammer can be crafted with 8 Iron Bars and 3 of any Wood. However, it is also obtained upon creation of a Journey mode character, placed in the fourth slot of the Hotbar.
Its best modifier is Light for harvesting purposes and Legendary for combat purposes.