Pixie Dust

Pixie Dust increase your chance of refining a craftable item.

If you have a Pixie Dust and you craft an item, the game asks you if you want to use it. If you do, the probability to get a refined item is increased by 60%. If the item doesn't turn out refined, Pixie Dust is not consumed.

Can be found in:

Peridot Box
Wooden Box
Ornate Box
6% chance to drop from converting Golden Eggs by Fuzzlehorn
chance to drop from converting Wheat by Fuzzlehorn

Suggestion: use it when you craft a high tier hat, since they require many Shiny Rubies and Diamonds. The item that consumes most Diamonds and Rubies is a Crow Top Hat.