The Fire Medallion is crafted with four Bricks and four Golden Nuggets in a ring, with a piece of coal at the center. It can be charged by taking fire damage, and when fully charged, it takes on a purple enchanted item sheen.
When right-clicked and thrown as a splash item, it rains down fireballs on an area and harms every living thing (non-fire-resistant) within its radius.
It can also be used to craft the Pyro Amulet and Headband of Valor.
Headband of Valor