The item known as Infernal Iron in Baldur’s Gate 3 is one of the most confusing materials in the entire game. Players pick it up early, don’t know what to do with it, and worry if they’ve missed something important. This massive, 2500-word guide breaks down everything you need to know about infernal iron BG3 – all locations, every use, how it affects Karlach’s questline, what patch changes matter, and whether you should save or spend it. No fluff, no misinformation – just the complete truth.

What Is Infernal Iron in BG3?

Infernal Iron (sometimes called “Infernal Alloy”) is a special crafting material forged in the hells. In Baldur’s Gate 3, it’s tied directly to Karlach’s companion questline and a few unique crafting recipes. You can’t use it for normal blacksmith crafting – only specific NPCs can work with it.

Because of its rarity, players often panic that they used it incorrectly. The good news? After several patches, the game now includes more pieces than you actually need, making it easier to experiment.

  • Quest Item: Used for Karlach’s infernal engine upgrades.
  • Crafting Material: Required for special armor sets.
  • Tradable: Can be sold, but shouldn’t be.
  • Non-respawnable: All infernal iron BG3 pieces are hand-placed, not farmed.

Understanding how many pieces exist – and what each does – is key to managing your playthrough.

All Infernal Iron BG3 Locations (Complete List)

There are more than a dozen guaranteed infernal iron sources across Acts 1, 2, and 3. Some are easy to miss, some are locked behind dialogue, and others require stealth, lockpicking, or combat.

Act 1 Infernal Iron Locations

Most players find their first piece in Act 1. Here are all reliable sources:

Location How to Get It Notes
Emerald Grove – Tiefling Smith’s Chest Pickpocket or lockpick the chest Only accessible before major Act 1 events
Blighted Village – Blacksmith’s Basement Inside locked workshop cellar Requires good Perception to spot hatch
Shattered Sanctum – Goblin Camp Behind Dror Ragzlin’s throne Steal or fight your way through
Zhentarim Hideout Inside storage crates You must find the secret hatch in Waukeen’s Rest
Grymforge – Duergar Smith Reward for helping the Duergar Choices may determine if you receive it

Act 2 Infernal Iron Locations

Act 2 expands the availability significantly:

  • Last Light Inn – Tiefling refugee crates
  • Moonrise Towers – Prison chests
  • Gauntlet of Shar – Random loot piles
  • Reithwin Town – Locked houses

Act 3 Infernal Iron Locations

Act 3 offers the last and largest amount of infernal alloy:

  • Steel Watch Foundry – Multiple crates of Infernal Alloy
  • Lower City – Weapon shop basement
  • Wyrm’s Rock Prison – Guard room storage lockers
  • Redhammer the Smith – Dialogue reward
  • House of Grief – Secret armory

Even if you miss several locations, you can still complete every quest requiring infernal iron BG3 items.

All Uses for Infernal Iron in Baldur’s Gate 3

The biggest question players ask is: “Should I give infernal iron to Dammon or save it?”

Here’s the definitive answer.

1. Karlach’s Infernal Engine Repairs

This is the primary and most important use. Dammon (the Tiefling blacksmith) can repair Karlach’s engine multiple times throughout the game.

Upgrade Cost Effect Where
First Repair 1 Infernal Iron Stops overheating temporarily Emerald Grove (Act 1) or Last Light Inn (Act 2)
Second Repair 1 Infernal Iron Further stabilizes engine, unlocks new dialogue Last Light Inn
Final Repair (Partial) 1-2 pieces depending on patch Concludes Karlach’s upgrade arc Act 3 – Dammon’s Forge

Important note: You cannot “save” Karlach fully even with more infernal iron. This is a story decision, not a resource-dependent one.

2. Crafting Infernal Metal Armor

Dammon can craft special armor sets later in the game:

  • Hellforged Helm
  • Armor of the Infernal Host
  • Gloves of Soul Catching (varies by patch)

These are strong mid-late-game options, especially for melee builds needing fire resistance.

3. Steel Watcher Repairs (Act 3)

Side quests involving the city’s mechanical guardians sometimes require infernal iron, depending on player choices.

4. Trading and Miscellaneous Interactions

Some merchants make unique comments or minor trades, but nothing major compared to the Karlach storyline.

Should You Save Infernal Iron or Spend It?

Players often hoard infernal iron BG3 items, fearing they’ll need them later.

The truth:

  • You need **3 pieces minimum** to see every Karlach upgrade.
  • You need **5-7 total** if you want all crafted armor.
  • The game contains **way more than that** across all acts.

So yes – using it early is completely safe.

The only mistake is selling it. Merchants offer terrible prices for such a rare material, so never trade it away.

Where to Use Infernal Iron – Dammon’s Locations

Dammon moves throughout the story, and missing him can lock you out of upgrades. Here are all his appearances:

  1. Act 1 – Emerald Grove
    Find him near the central forge by the Tiefling refugees.
  2. Act 2 – Last Light Inn
    If he survives Act 1 events, he appears next to the stable.
  3. Act 3 – Baldur’s Gate Lower City
    Dammon relocates to the forge in the main city, unlocking the crafting menu.

If Dammon dies, Karlach’s questline becomes extremely limited.

Karlach and Infernal Iron – How It Actually Works

One of the biggest misconceptions in the community is that Karlach can be “saved” with enough infernal iron. This is incorrect.

Here’s the accurate breakdown:

  • Infernal iron only stabilizes her for temporary story beats.
  • Her ending options do not change based on how much you repair her.
  • Patches have expanded her narrative, but not removed the tragedy.
  • Her infernal engine is a mechanical curse that even Dammon cannot fully fix.

This does not mean infernal iron is pointless – it helps unlock her personal scenes, romance content, and bonding dialogue.

Infernal Iron vs. Infernal Alloy – What’s the Difference?

Players often confuse these two items because older patches used them inconsistently. In the current version:

Item Used For Found In Notes
Infernal Iron Karlach repairs, crafting Acts 1-3 Main material
Infernal Alloy Act 3 crafting / Steel Watch Mostly late game Rare but not essential

Functionally, most players will only need to focus on infernal iron.

Permanently Missable Infernal Iron?

Early in the game, some pieces can disappear depending on your choices. These include:

  • Killing all Tieflings in Act 1
  • Missing the chance to loot Blighted Village basement
  • Killing Dammon before upgrades
  • Skipping Zhentarim hideout
  • Letting the Grove burn during the Goblin attack

However – because the game offers so many pieces later – missing Act 1 iron is not catastrophic.

Best Builds That Benefit from Infernal Iron Gear

Some classes and builds synergize extremely well with infernal-forged equipment.

1. Barbarian (Karlach build)

  • Fire resistance is extremely valuable
  • Extra AC from infernal armor stacks with Rage survivability

2. Fighter / Paladin

  • Heavy armor proficiency makes full use of infernal sets
  • Great for tank builds

3. Warlock (Fiend)

  • Lore synergy with infernal materials
  • Extra resistances help with survivability

4. Monk

Not typical, but infernal gloves boost unarmed builds depending on patch.

Tips, Tricks & Things Most Players Miss

Here are the lesser-known mechanics and secrets relating to infernal iron BG3:

  • Steal infernal iron without consequence in many areas – no reputation loss.
  • You can loot Act 3 foundry crates endlessly before triggering fights.
  • Some infernal iron is hidden in trapped containers – use Mage Hand.
  • Dammon’s Act 3 prices vary based on approval and persuasion.
  • Several pieces are in areas that only appear after long rests.
  • Infernal iron weighs little – keep all of it.
  • It never breaks, spoils, or decays – permanent material.

FAQ – Infernal Iron in BG3

Is infernal iron limited?

Yes, but the game provides far more than required.

Can you craft weapons with infernal iron?

No – only armor and quest-related items.

Does Karlach need more iron for a secret ending?

No, her ending does not change with extra iron.

Should you give infernal iron to Dammon immediately?

Yes – there is no penalty for early upgrades.

Can infernal alloy replace infernal iron?

No, they serve different story and crafting purposes.

Final Thoughts on Infernal Iron BG3

Infernal iron is one of the most important yet misunderstood resources in Baldur’s Gate 3. While its primary use is improving Karlach’s unstable infernal engine, it also unlocks unique armor, helps with late-game crafting, and deepens narrative interactions. The fear of “wasting” it is unnecessary – the game gives you more than enough pieces across all three acts.

Use it freely, upgrade Karlach, craft infernal armor when available, and explore every corner of the map. Infernal iron BG3 items reward players who stay curious, loot everything, and pay attention to NPCs. Whether you’re a perfectionist, a first-time adventurer, or a min-maxing veteran, managing this rare metal properly ensures a smoother and more immersive experience throughout Baldur’s Gate 3.