Coal is a critical crafting material in Starsand Island that becomes increasingly important as you progress into more advanced tools, furniture, and equipment. Unlike Charcoal β which you can produce by burning wood in a campfire, fireplace, or furnace β Coal is a mined ore found exclusively inside the Moonlit Forest dungeon. It cannot currently be purchased from any shop, which makes knowing exactly where to look essential.
Quick answer: Head to the Luminbridge area of the Moonlit Forest and mine the pitch-black ore deposits found between Dreamfall Garden and Crystalith Hideout.

Where to find Coal in the Moonlit Forest
Coal Ore spawns in the Luminbridge section of the Moonlit Forest, concentrated in the stretch between the Dreamfall Garden and Crystalith Hideout camps. The deposits are easy to spot because they are distinctly pitch black, standing out sharply against the lighter-colored ores like Copper, Tin, and Quartz that populate earlier sections of the forest. If you're unsure whether a rock formation is Coal, equip your Pickaxe and walk close to it β a label will appear confirming the resource type once you're within range.
Additional Coal deposits can be found in the large open area just before the turtle boss encounter. Dropping down into the river from the bubble bridge in that same zone reveals even more Coal nodes along the riverbed. Collecting everything during a single trip through these areas should yield a healthy supply.
Keep in mind that lower-tier resources like Copper, Tin, and Quartz gradually thin out as you push deeper into the Moonlit Forest, replaced by higher-tier materials. Coal sits in that mid-to-late portion of the dungeon's resource progression, so you won't encounter it near the entrance.

Tools you need to mine Coal
A standard Pickaxe is sufficient to break Coal deposits. However, stronger pickaxes β unlocked by advancing the crafting profession β will speed up the process significantly. The Impact Hammer can break every ore type in the Moonlit Forest, but dedicated upgraded pickaxes still tend to be faster for bulk mining runs.
You'll also want to make sure you have enough inventory space before heading in. Coal stacks in your bag, but if you're planning to grab other ores along the way, upgrading your backpack beforehand saves you from having to make multiple trips.

Boosting Coal yield with Green Grape Juice
Drinking Green Grape Juice grants a Bonus Ore buff that increases the amount of ore you receive per deposit. Stacking this buff to its maximum level before a mining run through the Moonlit Forest can dramatically cut down on the number of trips you need to make. This is especially useful in the early-to-mid game when Coal demand outpaces supply, and every node counts.
Late-game solution with mining bots
Coal scarcity is primarily an early and mid-game problem. Once you progress far enough, you can unlock mining bots that passively gather ore for you. At that point, Coal stops being a bottleneck entirely. Until then, running a consistent loop through the Luminbridge area β ideally buffed with Green Grape Juice β is the most reliable farming method.

Coal vs. Charcoal
It's worth noting that Coal and Charcoal are entirely separate materials with different uses. Charcoal is produced by burning natural resources like Sticks, Fronds, Wooden Planks, or Logs in a campfire, fireplace, or furnace. Sticks are the most efficient option since they have the shortest burn time at 20 seconds. Charcoal is used primarily for crafting Gunpowder and colored powders, and it can also serve as a fertilizer. It is available for purchase in shops.
Coal, on the other hand, is strictly a mined resource tied to smelting and advanced crafting recipes that require iron and gold processing. The two are not interchangeable, so make sure you're gathering the right one for whatever you're trying to build.
Moonlit Forest navigation tips
Getting to the Coal-rich zones requires some progression through the Moonlit Forest's obstacles. Certain paths are blocked by large rocks that can only be broken from one side, forcing you to find alternate routes. Camps scattered throughout the forest contain tents for sleeping and crafting benches, but each camp's yellow crystal needs 5 Fluorite to repair β so pick some up as you go.
About a third of the way in, a locked Bronze Gate blocks further progress. You'll need to advance the exploration profession by completing quests for Zephyria to receive the task that leads you to the Bronze Keys. Later obstacles, including branches that require a Fire Arrow and the Water Wheel elevator, are also gated behind exploration profession milestones.

Coal farming in Starsand Island comes down to knowing the right stretch of the Moonlit Forest and making each trip count. Focus your mining runs on the Luminbridge corridor between Dreamfall Garden and Crystalith Hideout, use Green Grape Juice to maximize yield, and push toward unlocking mining bots when you can. The scarcity is temporary β but until automation kicks in, efficient routing through the forest is your best friend.