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I will go through several sections for each item.
Damage: How much damage it does to enemies, if relevant.
Magic: How much magic power it uses, if relevant.
Use: Details of other uses.
Location: Where the item is found.
Needed Items: Other items that are required to obtain this item.
Required: Is the item required to beat the game.
Additional: My personal thoughts, opinions, and whatnot regarding the item.

Items

Bow and Arrows


Damage: 4 (Normal Arrows), silver arrows will one-hit kill every enemy and boss except for Ganon.
Magic: None.
Use: Can be used to hit far off enemies, and is required to kill certain enemy types. Can also be use to hit distant switches. In the GBA version arrows can break pots. Silver arrows can break a whole row of pots.
Location: The bow is the dungeon item of the Eastern Palace. The bow can be upgraded at the Big Fairy fountain to shoot the silver arrows.
Needed Items: N/A
Required: Yes. Needed to kill certain enemies and needed to shoot the silver arrows to defeat Ganon.
Additional: The fact that their is slight delay for Link drawing the bow is attention to detail that I did not expect in an SNES game.

Boomerang


Damage: 1
Magic: None.
Use: Stuns enemies, and can be use to hit distant switches. It's better are hitting switches than the bow and arrow because it is infitinly usable. It can also be thrown diagonally by pressing two directions at the same time (though this is tricky to do, I'm not sure if this can be done in the SNES version). The normal boomerang (blue) travels, at most, half the length of the screen. The magical boomerang (red) can travel the full length of the screen and travels faster.
Location: Hyrule castle. The boomerang can be upgraded at the waterfall of wishing.
Needed Items: N/A
Required: No.
Additional: This is my go to item to have equipped. I found that this was the best option when I first started playing the game and didn't quite have the muscule memory for the buttons yet. If I accidentally pressed the "use item" button, it wouldn't expend any magic or consumable items, but it still has a chance of being helpful by possibly stunning the enemy.

Hookshot


Damage: Intantly kills any enemy that isn't stunned by it and isn't immune.
Magic: None.
Use: Stuns enemies and can be used to hit distant switches. Can also be used to pull Link towards pots, chests, and other objects. When the hookshot is extended Link is completely immune to all damage, making it possible to avoid some obstacles, however Link is unable to move in this state, so it must be timed correctly.
Location: Dungeon item of the swamp palace.
Needed Items: Flippers (to access dungeon).
Required: Yes, required to get to certain areas.
Additional: This is what I consider to be the expert form of the boomerang. It is better in some ways, since it can allow you to completely avoid any damage, but it also makes it so you can't move, so you have to make sure you time your panic item usage well. I occasionally use the hookshot like this in a few specific instances but I mostly stick to the boomerang as my go to item.

Bombs


Damage: 4
Magic: None.
Use: Damages enemies, but it'smain usage is to destroy cracked walls and can hit switches on a delay. Bombs can be picked up and thrown.
Location: Many places.
Needed Items: N/A
Required: Yes, required to explode certain walls and solve some puzzles.
Additional: Whenever I have bombs equipped I'm always paranoided that I'm going to accidentally hit the button and drop a bomb in front of me. It's happened before.

Mushroom


Damage: N/A
Magic: None.
Use: This is a temporary item, give it to the witch at the potion shop to get the magic powder.
Location: Lost woods.
Needed Items: N/A
Required: No.
Additional: This item is an means to an end.

Magic Powder


Damage: None.
Magic: 8
Use: Will transform most enemies into a yellow buzz blob, which can be killed in one hit. Will transform anti-fairies into fairies. Other miscellaneous uses. In the GBA version it can be used to break pots.
Location: Potion shop, after you give the mushroom to the witch.
Needed Items: Mushroom.
Required: No.
Additional: It surprises me how few people know what magic powder on anti-fairies turns them into fairies.

Fire Rod


Damage: 8
Magic: 16
Use: Can be used to light distant torchs and to light enemies on fire with a fast moving projectile.
Location: Dungeon item of Skull Woods.
Needed Items: Hammer (to access dungeon).
Required: Yes. Required to solve some puzzles and to beat Trinexx.

Ice Rod


Damage: 8
Magic: 16
Use: Can be used freeze enemies with a slow moving projectile.
Location: A bombable cave in the southeast corner of the map.
Needed Items: Bombs.
Required: Yes. Required to beat Trinexx.
Additional: It frustrates my that the ice rod is almost not required, but the only time it's required is for the Trinexx fight. And yes, I have on one occasion forgotten that fact until I was in the Trinexx fight.
I have several other stories regarding the ice rod, but this is all I'll share for now.

Bombos Medallion


Damage: Instant kill for regular enemies.
Magic: 32
Use: Kills any onscreen enemies by lighting them on fire.
Location: At what should be the enterance of the desert in the dark world. You can use the mirror to access a cliff in the light world.
Needed Items: Mirror, Book of Mudora, Master Sword.
Required: No.
Additional: This is the only medallion that is actually useful, and it's also the only medallion that is not required. I rarely use the medallions in general, but there is no situation where bombos is not the best option of the three of them.

Ether Medallion


Damage: N/A
Magic: 32
Use: Freezes all regular enemies on screen. Can also briefly reveal invisible pathways.
Location: On Death Mountain, to the west of the Tower of Hera.
Needed Items: Book of Mudora, Master Sword
Required: Yes. Required to access Misery Mire.
Additional: This is least useless of the two useless medallions. It's ability to show invisible platforms is somewhat useful (though, at this point I've memorized where the platforms are). My personal headcanon is that it shows the platforms by covering them in a layer of frost.

Quake Medallion


Damage: N/A
Magic: 32
Use: Turns all onscreen enemies into yellow buzz blobs.
Location: North of the Palace of Darkness, near where the waterfall of wishing should be in the dark world. Throw something into the circle of stones in the water.
Needed Items: N/A
Required: Yes. Required to access Turtle Rock.
Additional: I will use the quake medallion one (1) time, and that is the time where it's required.

Magic Lantern


Damage: 2 (in GBA version only).
Magic: 4
Use: Can light torches, and automatically creates a cone of light in dark rooms.
Location: Chest in Link's house, or the chest in the room just south of where you find your uncle, or the chest next to Zelda when you rescue her. Once you get the lantern from one of these chests the other two will have rupees.
Needed Items: N/A
Required: Yes. Required to see in dark rooms and to solve certain puzzles.
Additional: Interesting for being the only item that have multiple possible locations.

Magic Hammer


Damage: 8
Magic: N/A
Use: Can smash down pegs. Can also be use to damage enemies (and is required for some enemies).
Location: Dungeon item in the Palace of Darkness.
Needed Items: Bombs.
Required: Yes. Required to access the rest of the dark world.
Additional: ALttP has a tendancy to put to word "magic" in front of item names that really don't need it. The hammer doesn't use magic, there's nothing particularly magical about it. It's just a normal hammer.

Shovel


Damage: N/A
Magic: N/A
Use: Can dig up holes in the ground.
Location: Given to you in the dark world equivent of the haunted grove.
Needed Items: Hammer (to access area).
Required: Yes. To get the flute.
Additional: Another interesting item because in the SNES version you lose it once you get the flute. In the GBA version you keep the shovel and the flute.

Flute


Damage: N/A
Magic: N/A
Use: Link can use it to summon a bird, to fly him to and of 8 warp points around the map (only works in the light world). In the GBA version a 9th wrap point unlocks after you open the portal on turtle rock.
Location: Dig in the north west side of the haunted grove. Play the flute in front of the weather vain in Kakoriko village to activate the warping ablity of the flute.
Needed Items: Shovel.
Required: Yes. To access Misery Mire.
Additional: As a kid it took my an embarrassingly long amount of time to find this item.

Bug Catching Net


Damage: N/A
Magic: N/A
Use: Link can use it to catch fairy and bees and put them in a bottle. In the GBA version the net is used to catch other things for the riddle side quest. The net has the an additional niche use of being able to reflect Aghanim's attacks.
Location: In Kakoriko village talk to the boy in the house just north of the tavern.
Needed Items: N/A
Required: No.

Book of Mudora


Damage: N/A
Magic: N/A
Use: Allows Link to translate ancient Hylian text. Allows him to access the Desert Palace and to get the ether and bombos medallions.
Location: In the library south of Kakoriko village.
Needed Items: Pegasus Boots.
Required: Yes. Required to enter Desert Palace and to get ether medallion.
Additional: This is another item that took an embarrassingly long amount of time for my to get as a kid.

Magic Bottles


Damage: N/A
Magic: N/A
Use: Can be used to store fairies, bees, and potions.
Location: There is a total of four bottles. One can be bought in Kakoriko village for 100 rupees, another is in the tavern in Kakoriko village. One is found by talking to a man under the bridge north of Lake Hylia. The last is found by taking the locked chest (found in the dark world equivilent of the blacksmith's house) to the silent man near the enterance to the desert.
Needed Items: N/A (for two). Zora flippers (for one). Mirror, titan's mitt (for one).
Required: No.

Cane of Somaria


Damage: 2
Magic: 8 (no cost to explode block).
Use: Creates a pushable block which can be used to hold down switches. If you press the button again the block explodes into four projectile, one in each direction. It has a special use in Turtle Rock to make moving platforms.
Location: Dungeon item of Misery Mire.
Needed Items: Flute and ether medallion (to access dungeon).
Required: Yes. To solve certain puzzles and to navigate turtle rock.
Additional: I simultaneously love and hate this item. I hate it because it's in my least favorite dungeon. But I love it because it plays an important part in my favorite dungeon.

Cane of Byrna


Damage: 2
Magic: 24 to activate, 4 every 24 frames.
Use: Creates a force field which damages enemies that touch it.
Location: Cave on the west side of Death Mountain in the dark world.
Needed Items: Magic Cape OR health restoring items.
Required: No.
Additional: Definitely the most useless item in the game. At least the other optional items are really useful, but this one doesn't really have a point. The magic cape does it's job better. Enemies can get inside the force field if they try hard enough.

Magic Cape


Damage: N/A
Magic: 1 every 4 frames.
Use: Turns Link invisible. Enemies do not a attack you, you do not take damage, and you can walk through certain obstacles.
Location: In the graveyard, dash into the northeast most gravestone.
Needed Items: Pegasus boots, titans mitt.
Required: No.
Additional: The better version of the Cane of Byrna. The only optional item needed to collect a heart piece.

Magic Mirror


Damage: N/A
Magic: N/A
Use: Allows Link to travel from the dark world to the light world, leaves behind a portal that allows him to go back to the dark world. When in a dungeon it will bring you to the enterance of the dungeon.
Location: Given to you by the old man after you get out of the death mountain cave.
Needed Items: Power glove.
Required: Yes.

Equipment

Green Tunic


Use: Link takes the standard amount of damage.
Location: The default tunic equipped.
Needed Items: N/A
Required: N/A

Blue Tunic


Use: Damage taken is reduced by 1/2.
Location: Dungeon item in the ice palace.
Needed Items: Titan's mitt and fire rod (to access dungeon).
Required: No.
Additional: The first optional dungeon item.

Red Tunic


Use: Damage taken is reduced by 1/4.
Location: Dungeon item in Ganon's Tower.
Needed Items: 7 Crystals (to access dungeon).
Required: No.
Additional: The third, and last optional dungeon item. Also, objectively the ugliest of the tunics but I like it.

Fighter's Sword


Damage: 2
Use: The first sword you get in the game.
Location: Find the secret passage under the bush to the east of Hyrule castle.
Needed Items: N/A
Required: Yes.

Master Sword


Damage: 4 (sword), 2 (sword beam).
Use: The Master Sword allows you to access the top half of Hyrule castle and let's you get to ether and quake medallions. When at full health it will shoot beams. In the GBA version in can slice through signs.
Location: Lost woods.
Needed Items: 3 Pendants.
Required: Yes, to access Hyrule Castle part two, and to get the ether medallion.

Tempered Sword


Damage: 8 (sword), 2 (sword beam).
Use: The upgraded version of the Master Sword. Does all the same things as the Master Sword but does more damage.
Location: Find the frog/blacksmith to the south of Thieves' Town, take him to the blacksmith's house in the light world. Talk to them later to get your sword upgraded.
Needed Items: Titan's Mitt
Required: No.
Additional: Personally my favorite in terms of color. It's weird and I like it.

Golden Sword


Damage: 16 (sword), 2 (sword beam).
Use: The final upgrade of the Master Sword. Does the same things as the Master Sword and Tempered Sword but does more damage. In the GBA version the Golden Sword can smash pots.
Location: Throw the Master Sword or Tempered Sword in the big fairy's fountain.
Needed Items: Big Bomb
Required: No.
Additional: I am quite aware of the fact that the Golden Sword smashes pots in the GBA version. I play on the GBA version most of the time, and I actually wait until just before fighting Ganon to upgrade my sword. The only reason I do this is because I like to do a very small and unimpressive skip in Ganon's Tower that relies on a pot not breaking when hit with a sword. It's incrediebly silly but it's part of how I play the game at this point. It would be weird to do it any other way.

Fighter's Shield


Use: Automatically blocks simple projectiles like arrows if you're facing in that direction.
Location: Find the secret passage under the bush to the east of Hyrule castle.
Needed Items: N/A
Required: No, but automatically comes with the fighter's sword, which is a required item.

Red Shield


Use: Can also block fireballs in addition to simple projectiles.
Location: Throw the fighter's shield into the fountain at the waterfall of wishing.
Needed Items: Flippers
Required: No.

Mirror Shield


Use: Can also block lasers in addition to simple projectiles and fireballs.
Location: Dungeon item of turtle rock.
Needed Items: Cane of Somaria, hammer, and titan's mitt (to access dungeon).
Required: No.
Additional: The second optional dungeon item.

Pegasus Boots


Use: Can be used to quickly dash. This can be used to knock objects downs and can also damage enemies if you dash into them.
Location: Given to you by Sahasrahla after finishing the Eastern Palace.
Needed Items: Pendant of Courage.
Required: Yes, to get the Book of Mudora.

Power Glove


Use: Allows you to lift light colored rocks.
Location: Dungeon item in the Desert Palace.
Needed Items: Book of Mudora (to access dungeon).
Required: Yes, to access several areas.

Titan's Mitt


Use: Allows you to lift dark colored rocks.
Location: Dungeon item in Blind's Hideout.
Needed Items: Hammer and power glove (to access dungeon).
Required: Yes, to access several areas.

Zora's Flippers


Use: Allows you to swim in deep water.
Location: Can be bought for 600 rupees from King Zora in Zora's Domain.
Needed Items: Power glove.
Required: Yes, to access the swamp palace.

Moon Pearl


Use: Allows Link to keep his normal form in the dark world.
Location: Dungeon item of the Tower of Hera.
Needed Items: Any item that came hit distant switches (to navigate dungeon).
Required: Yes, to navigate to dark world.
Additional: The second easiest dungeon item to accidentally skip. One time I thought I had soft locked the game because I had done just that.