Minecraft Dungeons 2: Blacksmith and Salvaging Guide

TL;DR

• The Blacksmith is in Brave Haven — your central hub town.
• He upgrades gear Item Power using Emeralds and rerolls affixes using Echo Shards.
• Blacksmith has 3 levels — Level 1 (default), Level 2 (20 Echo Shards), Level 3 (40 Echo Shards).
• Higher Blacksmith levels unlock rerolling on rarer gear: Rare → Special → Unique.
• Salvaging gear gives you Emeralds and refunds any Enhancement Points spent on it.
• A Salvage All button lets you clear junk inventory in one click.
• Do not salvage Unique or Special items you like — upgrade them instead.
• Check back at the Blacksmith every few levels to keep your Item Power current.

The Blacksmith in Minecraft Dungeons 2 is one of the most important NPCs in the game. He sits at the heart of Brave Haven and is your go-to for keeping your favourite gear competitive as you level up. Without him, you are constantly throwing away weapons and armour you actually enjoy using just because a random drop has slightly higher Item Power.

This guide covers everything you need to know about the Blacksmith and the Salvaging system — how to use both, what each Blacksmith level unlocks, what to keep, what to scrap, and how to get the most Emeralds from your inventory.

Where Is the Blacksmith in Minecraft Dungeons 2?

The Blacksmith is found in Brave Haven, the central hub town in Minecraft Dungeons 2. Brave Haven is where all your key NPCs live, including the Blacksmith and the Enchantsmith. They sit side by side at the heart of the town.

You can teleport to Brave Haven from anywhere in the game using the menu wheel. Once you are done upgrading or salvaging, step on the Town Portal to return exactly where you left off. There is no penalty for leaving mid-run. Use this freely — especially before boss fights when you want to squeeze out a few more Item Power levels before committing.

What Does the Blacksmith Do in Minecraft Dungeons 2

What Does the Blacksmith Do in Minecraft Dungeons 2?

The Blacksmith has two main functions:

1. Upgrade Item Power — He raises any piece of gear you own up to your current character level cap, using Emeralds as the currency.
2. Reroll Affixes — He randomly rerolls the modifier (buff/perk) on a piece of gear using Echo Shards as currency. This changes the affix but keeps everything else about the item intact.

The key design decision in Dungeons 2 is that the Blacksmith lets you keep a favourite item relevant instead of forcing constant gear replacement. Found a Unique sword you love at Level 20? The Blacksmith can bring it up to your current power as many times as you like, for Emeralds. You never have to throw it away just because your level climbed.

This was a major pain point in many ARPGs and Mojang solved it cleanly here.

How to Upgrade Gear at the Blacksmith

The process is simple:

1. Travel to Brave Haven (use the menu wheel teleport if you are out in the world).
2. Walk up to the Blacksmith and interact with him.
3. Select the item you want to upgrade from your inventory.
4. The Blacksmith will show you the item’s current Item Power and the level it can be raised to.
5. Confirm and pay the required Emerald cost.
6. Your item’s Item Power is immediately increased — no missions required, no waiting.

The Emerald cost varies depending on the item’s rarity and how large the power jump is. Common and Rare items cost less. Unique items cost more. The game always shows you the cost upfront so there are no surprises.

One important rule: keep your equipped gear within about 10 Item Power levels of your current cap. If an item falls too far behind, upgrading it becomes expensive. The game warns you when equipped gear is underleveled, so watch for that notification as you progress.

How to Reroll Affixes at the Blacksmith

Every piece of gear in Minecraft Dungeons 2 has a random modifier — an extra passive bonus specific to that item copy. Two copies of the same sword can feel very different because of this affix.

If you have a great item but a bad affix, the Blacksmith can reroll it for you using Echo Shards. The reroll randomises the affix entirely. You might get something better. You might get something worse. The result cannot be undone, so think before you spend.

A well-rolled Special item from ten levels ago is often worth upgrading and rerolling rather than replacing with a freshly dropped Common item. The Blacksmith makes that possible.

Echo Shards can also be spent at the Town Merchant to refresh their stock — a useful alternative if you have more shards than you need.

Blacksmith Levels — How to Unlock Level 2 and Level 3

The Blacksmith starts at Level 1 and can be upgraded twice more. Each level expands what rarity of gear he can reroll affixes on:

• Blacksmith Level 1 (default) — Can upgrade Item Power on all gear. Can reroll affixes on Rare items only.
• Blacksmith Level 2 — Unlocks rerolling affixes on Special items. Costs 20 Echo Shards.
• Blacksmith Level 3 — Unlocks rerolling affixes on Unique items. Costs 40 Echo Shards.

Upgrading the Blacksmith to Level 3 is also required for certain achievements and trophies. If you are aiming for full completion, make this a priority as soon as you have enough Echo Shards saved up.

Item Power upgrades are available at all Blacksmith levels from the start — you do not need a higher-level Blacksmith to upgrade power, only to reroll higher rarity affixes.

Blacksmith vs Enchantsmith — What Is the Difference?

Players often confuse the Blacksmith and the Enchantsmith since they sit side by side in Brave Haven. Here is the clear split:

• Blacksmith — Handles Item Power and affixes. Makes your gear stronger in terms of raw power and randomised bonuses. Uses Emeralds and Echo Shards.
• Enchantsmith — Handles enchantments. Applies Enchantment Books you have found to your gear to give them active and passive effects. Uses Enhancement Points and soul-corrupted currency.

Think of it this way: the Blacksmith is about the gear’s base strength and its random perk. The Enchantsmith is about layering intentional build effects on top of that. You use both regularly — they complement each other rather than compete.

How Salvaging Works in Minecraft Dungeons 2

Salvaging is how you turn unwanted gear into Emeralds — the currency you then take back to the Blacksmith for upgrades.

When you salvage any weapon or piece of armour:

• You receive Emeralds based on the item’s rarity and power level. Rarer items give more Emeralds.
• Any Enhancement Points you spent enchanting that item are fully refunded. You never lose your points by salvaging gear.

This is important to understand. Salvaging is not punishing. You always get your enchantment investment back. That means you can freely put Enhancement Points into gear you are using right now and not worry about losing them when you find something better.

How to Salvage Gear in Minecraft Dungeons 2

There are two ways to salvage:

Salvage a Single Item

Open your inventory, highlight the item you want to remove, and select Salvage (right-click on PC, or the corresponding button prompt on controller). A confirmation screen shows how many Emeralds you will receive. Confirm and the Emeralds and any Enhancement Points are added instantly.

Salvage All (Bulk Salvage)

This is the big quality-of-life addition in Minecraft Dungeons 2. At the Blacksmith, there is a Salvage All button that clears all non-equipped, non-favourite junk from your inventory in one action. On PC, hold the S key to trigger multi-salvage.

Use it regularly. Loot drops fast in Dungeons 2 and your inventory fills up quickly. There is no reason to hoard Common and Rare gear you have already outgrown. Salvage it, collect the Emeralds, and put those Emeralds straight back into upgrading the gear you actually want to keep.

What to Keep and What to Salvage

This is the core decision you make constantly in Minecraft Dungeons 2. Here is a simple framework:

Salvage These

• Any Common or Rare item that is more than 10 Item Power below your current cap.
• Duplicates of gear you already have a better version of.
• Items with affixes that do not match your build at all.
• Anything you picked up only for the Emeralds — salvage it and move on.

Keep or Upgrade These

• Unique items — these have special effects not found on other gear. Even if the Item Power is behind, upgrade it at the Blacksmith rather than salvaging.
• Special items with great affixes — a well-rolled Special can stay relevant for a long time with Blacksmith upgrades.
• Any item that fits a specific build you are working toward — even if it is lower power right now.
• Quest reward gear with notable bonuses. For example, a great Unique you earn from a quest might be outdated in Item Power by the time you finish — do not salvage it. Upgrade it at the Blacksmith instead.

The golden rule: do not salvage Unique items just because they are underleveled. The Blacksmith fixes that. Salvage decisions should be about whether the item fits your build, not whether it is currently underpowered.

Emeralds — Your Most Important Currency

Emeralds are the backbone of the Minecraft Dungeons 2 economy. They come from:

• Salvaging gear (your primary source)
• Smashing pots and opening chests in the world
• Defeating enemies (lower chance)

Do not hoard Emeralds. They are meant to be spent. Check your gear every few levels, return to the Blacksmith, and upgrade whatever is falling behind. Sitting on a pile of Emeralds while your weapons are underpowered is a common mistake that makes the mid-game much harder than it needs to be.

The upgrade loop is simple: explore → collect loot → salvage junk → upgrade keepers → repeat. Once this rhythm clicks, progression in Dungeons 2 feels smooth and rewarding.

Blacksmith Tips for Every Stage of the Game

Early Game (Levels 1–15)

The Blacksmith unlocks during your early campaign progression. As soon as he is available, start using him. Salvage everything you replace. Do not enchant Common gear heavily — save your Enhancement Points for items you plan to keep. Focus on filling all gear slots first, even with weak items, because empty slots lower your overall Item Power.

Mid Game (Levels 15–60)

This is where the Blacksmith becomes critical. You are finding better and better gear, but Unique items may be lagging behind raw Item Power. Prioritise upgrading your Uniques every few levels. Unlock Blacksmith Level 2 with 20 Echo Shards so you can start rerolling Special items. Salvage Rares you replace and funnel Emeralds straight back into upgrades.

Endgame (Levels 60–100)

At this stage you are pushing toward Item Power 150. Upgrade costs rise, so keep salvaging consistently. Unlock Blacksmith Level 3 with 40 Echo Shards to reroll Unique affixes — this is where you fine-tune your build for endgame Dungeons, Rifts, and Soulstorms. By Level 85 you should have enough Enhancement Points for fully enchanted gear. Use the Blacksmith to make sure your Item Power matches that investment.

For a full breakdown of what happens at each character level and how Enhancement Points accumulate, see our Minecraft Dungeons 2 Max Level Cap and Milestones Guide.

Blacksmith and Talismans

Talismans in Minecraft Dungeons 2 have their own separate leveling system and are not upgraded at the Blacksmith. Talismans gain experience from enemies defeated while they are equipped and level up on their own through regular play. Do not confuse them with gear — they follow a completely different progression track.

For full details on how Talismans work, how to equip them, and which ones are worth using, see our Minecraft Dungeons 2 Talisman Guide.

More Minecraft Dungeons 2 Guides

• Minecraft Dungeons 2 Max Level Cap and Milestones — level up fast and reach 100
• Minecraft Dungeons 2 Talisman Guide — every talisman and what they do
• Minecraft Dungeons 2 All Enchantments — full enchantment list for every build
• Minecraft Dungeons 2 How to Equip Capes — unlock and wear every cape
• Minecraft Dungeons 2 Beginner Guide — best tips to start strong
• Minecraft Dungeons 2 Review — is the full game worth it?
• Minecraft Dungeons 2 PC Requirements — can your PC run it?

Where to Play Minecraft Dungeons 2

• Official Minecraft Dungeons II Page
• PlayStation Store
• Xbox Store
• Nintendo Switch Store
• Steam (PC)

Frequently Asked Questions