Obsidian arrow is an arrow ammunition for bows. It is crafted in batches of 20 and cannot be upgraded. The arrow deals piercing damage and is a solid midgame option, especially because its main ingredient, Obsidian, is easy to gather in the Mountain biome once you have an Iron Pickaxe.
It can be crafted at a Workbench using 8 Wood, 4 Obsidian, and 2 Feathers. Obsidian arrows can also be found randomly in chests. Since Obsidian is used for relatively few other purposes, turning surplus ore into arrows is an efficient way to use it.