What is a tool?
A tool is an item in world that you can equip separate from your avatar. Most tools perform a task for the user. For example: A fishing pole.
While others will simply provide a cosmetic affect. Example: An Umbrella.

How do I use a tool?
You can use a tool by sending it to your town from your inventory or bank.

Once you've done so, go on over to your town and look in the top right of the page for the wrench icon. Click on that and you will see the tool inventory pop up along the bottom of the page. This will display any and all tools you have in your land inventory. Simply click the tool you wish to equip and you will see that your wrench icon has changed to the image of the item you've equipped. In some cases, you will see a visual change to your avatar as well!





What if I want to remove the tool from my town?
To remove the tool from your land you will need to first unequip it if it is currently equipped. To do this, open your tool inventory and click on the unequip tool button.

Once that's done open your Town Inventory by selecting the image of the box.


With your Town Inventory open, look for the bank icon on the right of your Town Inventory.


Toggle the send to bank button, you will know it's toggled by the button turning blue with a red outline. You then find the tool you wish to remove from your town and click on it to send it to the bank.

Lanterns!
When used as a tool, a lantern will strengthen the light around your character during the night.
Lanterns add a color based on the lantern itself. Some may add a blue glow while others might be Orange or Yellow!

Note: Below are some examples of lanterns and some images of how they look in game when equipped (In the spoilers). The images for 'nighttime' were taken when the night phase was the darkest during my gameplay to properly show how they light up around the character. Handheld lanterns are not the only source of light in game, some items provide their own glow simply by placing them in your town (ie: Lamps and pets). I will not be discussing these items in this thread.


Pumpkin Lantern - Equips to the hand slot. Emits an Orange light

Ruins Diver Lantern - Equips to the hand slot. Emits a Blue light

Stargazer Lantern - Equips to the hand slot. Emits a Yellow light

Grape Harvest Lantern - Equips to the hand slot. Emits a purple light

Ice Fox Lantern - Equips to the hand slot. Emits a white light

Sparkler - Equips to the hand slot. Emits a yellow light

Umbrellas!
Umbrellas are purely cosmetic.
Dragonfruit Umbrella - Equips to the hand slot. This one has not been released yet.

Glenn Umbrella - Equips to the hand slot.

Froggy Umbrella - Equips to the hand slot.

Spiderdom Umbrella - Equips to the hand slot.

Pumpkin Umbrella - Equips to the hand slot.

Warm Critters Umbrella - Equips to the hand slot.

Ice Fox Umbrella - Equips to the hand slot.

Cherry Harvest Umbrella - Equips to the hand slot.

Dark Unicorn Umbrella - Equips to the hand slot.

Wings!
Flapping Imp Ears - - Equips to the head slot. When equipped as a tool they will flap while you're in the world. If you equip them as an item to your avatar they will not flap when you're in world.

Icicle Flapping Wings - Equips to the back slot.

Forest Butterfly Flapping Wings - Equips to the back slot.


Concerned Fairy Queen Wings - Equips to the back slot.

Misc - the below items are not cosmetic. These items all have a use in game and equip to the hand slot. Most of the below items have no equipped look.

- Farming Hoe - Used to till soil in a greenhouse.
- Fertilizer
Stick Rod - Used for fishing in ponds. This item has a limited durability of 30 casts.

Copper Watering Can - used to water plants during farming. May be filled at a well or other water source. This item has a limited durability of 28 waterings and will need to be remade or purchased when broken.
Fluff Brush - Equip this to gather fluff when petting animals. Fluff can be used for crafting.
Landscaping Tool - Equip this to remove one landscape item such as Trees, leaf piles and ponds from your land. This item has one use and then it will break!
Seeds are a tool used for farming. For more information on farming, see the farming guide here.

There are many more tools to be found. What I've shown is only a small number of them.

reserved

reserve

Other guides I've made that you might find useful
Farming guide
Item Designer Guide
Taming Guide

If you have a tool not in my list, please feel free to post or message me a screenshot of your character using it and I'd be happy to add them to the list as long as the item in question is clearly visible.

What is the fluff useful for?

Fluff is not a tool. As stated above, it is a crafting material