Chests and Barrels are dropped as loot by dead enemies, or found in all levels of the Dungeon. When a player clicks on them they can loot them and take whatever is inside. In the dungeons, chests and barrels contain weapons, gold coins, health potions, runes , scrolls , rings , shields, and talismans. A chest dropped by a monster in a dungeon of a higher level than your own will always contain a diamond. In any of the islands, chests dropped by monsters may contain weapons, elemental weapons, scroll weapons, runestones, gold coins, rings, shields, and gifts. A diamond will only be found in a chest dropped by a monster to you if, you alone, had dealt at least 50% of the damage to the monster. This is why chests may not contain diamonds after you defeat an enemy with only a small portion of health left. If you are currently on a quest that involves collecting items from defeated monsters, these quest items can be found in chests.
In Sherwood Classic, chests were large and red. All of the chests in Sherwood Classic contained the game's few weapons. Because there was no dungeon at the time, the chests were hidden throughout the island and the main goal of the game was to find them all. They only contained one weapon and one shield each. When Sherwood Dungeon was released, barrels were added, having the same effects as chests. There have been rumors that chests contain better items than barrels, but this rumor has been proven wrong. At first, chests and barrels were only found in the dungeons and were never dropped by monsters. Instead, monsters occasionally dropped one item. However most of these items only consisted of shields, weapons, and very rarely, elemental weapons. In Sherwood Dungeon version 2.0, before diamonds were released, monsters occasionally dropped chests, exact to those in Sherwood Dungeon today. These new chests contained anything from rings to scroll weapons. When diamonds were introduced, all monsters dropped a chest that contained items when defeated.