Item Creation is a staple of the Star Ocean series and has been present in some form in every single main entry. As the name suggests, you can create new items from ingredients you find in the wild, whether you buy them from a merchant, find them in chests or even get them from enemies. You can first gain access to Item Creation whenever you get to Myiddok and finish the If It Tastes like Blueberries quest from Welsh Vineyard. Doing this Quest will reward you with a book that opens up the Compounding skill, allowing you to access the Item Creation option from the in-game menu.

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You can make all manner of things with Item Creation (left), and can even augment your own equipment later on (right).

There are different forms of Item Creation, with the first one you get likely being Compounding, a skill that lets you make usable items. Later skills will allow you to make equipment for your characters, make food, and much more. You cannot make an item if you do not have the ingredients for it (those you don’t have will appear as red on the right side), and you do not know what you are creating on the first try, as the item’s name appears as ???. As you level up the corresponding Specialty Skills, then you will be able to create more items. Also, note that there is no way to fail at creating the items, so there’s no fear of wasting items.