How to use Battle Idols and Protection Idols in Valheim, and where to find the Forge of Potential
If you've started a new character or world in Valheim 1.0 from the beginning (or are playing it for the first time ever), you may be wondering about the Battle Idols and Protection Idols you've found. While opening chests in Valhiem's various biomes, you will occasionally come across an item called a Battle Idol or Protection Idol made of wood, bronze, iron, or other materials.
These Idols don't seem to serve an immediate purpose, but hang onto any you find because you'll eventually be able to use them to upgrade your weapons and armor. beltedkingfisher.blog
Valheim Idols: Where to find them

Idols can randomly be found as loot in chests, and chests can spawn in various places in the world: abandoned houses, burial chambers, ruined towers, shipwrecks, Viking graveyards, and other points of interest.
Which type of Idol you find will depend on what biome you're in:
- Wooden Idol: Meadows biome
- Bronze Idol: Black Forest biome
- Iron Idol: Swamp Biome
- Silver Idol: Mountains biome
- Black Metal Idol: Plains biome
- Black Marble Idol: Mistlands biome
- Flametal Idol: Ashlands biome
- Bloodgold Idol: Deep North biome
The Idols will allow you to upgrade your weapons and armor: the Battle Idols are used to improve your weapons, and the Protection Idols are used to improve your armor. You can only use Idols at one place: the Forge of Potential.
How to find the Forge of Potential
To find Valheim's Forge of Potential, you'll need to search the Mountains biome. Since it's so cold there, be sure to have items that keep you warm, like frost resistance mead, or a wolf fur cape or wolf fur armor chestpiece to avoid freezing.
Once you're close to the Forge of Potential, an icon that looks like an Idol will appear on your map:

In both worlds I've found it in, the Forge of Potential has been very close to boss Moder's summoning altar, but I don't know if that's a rule for where it appears or if that was just luck. Both times it has been near the top of a tall peak, however.
How to use the Forge of Potential

The forge is a workbench you can use to upgrade your gear if you have an Idol and suitable gear in your inventory. Each Idol will work with gear made of the same material: if you have a Bronze Protection Idol, for example, you can upgrade a piece of armor made of Bronze. An Iron Battle Idol will let you upgrade an iron weapon.
Interacting with the Forge will let you select the gear you want to upgrade if you have an Idol in your inventory. Press the "Attempt Refinement" button to activate it.
Important: The Forge has a chance of failure. If your refinement fails, the gear you're attempting to upgrade will be destroyed, though you'll recover the crafting materials needed to remake it. You won't be able to use the Forge of Potential to recraft it, however: it can only be used for upgrades.
You'll also take damage if your upgrade fails, so be sure you're at full health!
Forge of Potential upgrade results
Is upgrading worth it? Here's a look at one example of a bronze sword I upgraded at the Forge of Potential:
You can see that the durability increased by 50 points, slash damage went from 41 (11-24) up to 47 (13-27), and block force went from 25 to 30, but all other stats remained the same.

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