The Magic Bottle is a piece of equipment used to take in various things such as fire and water, and use them for various purposes, such as burning vines and growing plants, with Down+Z.
The Magic Bottle can be found in the tree on Eber Island. The Magic Bottle Map will lead to the hidden doorway to the inside of the tree. Once inside, there is a block of sand covering the chest containing the Magic Bottle, which must be dug up.
The Magic Bottle can hold: