- Found on a corpse as loot in the pit that Patches kicks the player down in the Tomb of the Giants.
- Rare drop from Necromancers in the Catacombs.(patch 1.04)
By blocking with the Skull Lantern in the left hand, the player's light radius and ability to see in the dark is greatly increased. However, the Skull Lantern has terrible damage reduction, so players must judge for themselves when visibility or protection is more important.
It will only deal fire damage when used in the right hand as a weapon. This, along with the fact that the Skull Lantern cannot be upgraded, makes it clear that the Lantern is only good for lighting up dark areas.
The Skull Lantern has one last effect unique to this light source within the Tomb of the Giants: when holding it out as if to block, a series of blue light orbs lining the walls become visible, which, when followed, lead the player to the tomb of Gravelord Nito. This does not occur when using Cast Light or the Sunlight Maggot.
Of the three light sources available to the player (the Skull Lantern, the Sunlight Maggot, and the Cast Light sorcery), the Skull Lantern can easily be considered the worst option due to the effect being active only when the player raises it, and especially because it forces the player to sacrifice his/her shield. However, it has no requirements (all classes start with more than five Strength) to use and is arguably easier to obtain than the Sunlight Maggot, so players may well find it a necessity until they either memorize the layout of the Tomb of the Giants or acquire other means to produce light.
The Skull Lantern cannot be upgraded.
- When using a spear or thrusting sword to attack while holding up the lantern, the light will go out for the duration of the attack.
- One Skull Lantern per playthrough can be traded to Snuggly the Crow for a Ring of Fog.