An NPC or Non-Player Character is an automated character that provides a service to players. Most NPCs are vendors, providing items in exchange for coins, and vice versa. Exceptions are the Guide, who provides information, the Nurse, who doesn't sell items, but instead provides health restoration in exchange for coins, and the Clothier, who provides Vanity clothes. A player can utilize NPCs by standing near them and right-clicking on them.

NPCs have randomly generated names as of 1.1.

Terraria - NPC House(02:08)
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Conditions

For all but two of the 12 NPCs (excluding the Old Man and the Guide at the start of the map) to spawn you must build them a home, which consists of a light source, a flat surface item, a comfort item, as well as meeting one other unique requirement for each NPC, which are listed below (more information in the home page). This doesn't exclude the guide, who still requires the same to respawn. NPCs will not spawn if a Goblin Army is present, or if your house is on an area affected by corruption.

List of NPCs (As of 1.1.2)

Notes

• NPCs can only jump 3 blocks high.
• The Guide is an NPC that spawns upon creating a new world. He will move into the first house you build.
• If a house occupied by an NPC is destroyed, the NPC will move out, but will walk around in the same area and will no longer stay still at night, until the house is restored or a new one is built elsewhere.
• When night begins, NPCs will walk into their house and remain there until dawn, at which point they will walk around again and go through doors.
• All NPCs have 250 HP and can take damage from enemies, (with exception of the Old Man) though their health automatically regenerates over time, and a killed NPC will respawn and move back into its house (provided it is still standing with all requirements met).
• Items sold to NPCs (as of the 1.0.5 update) may be re-purchasable at the same price until the player closes the shop screen.
• Currently, the Guide is the only NPC you can damage and kill with weapons, you can do this by equipping the Guide Voodoo Doll in an accessory slot. Other NPCs can only be damaged and killed with lava, boulders, traps, or monsters.
• NPCs will automatically teleport back to their home if they have just spawned or if it is night-time and they are unable to get back to their house. However, if you can see their house they will not teleport to it.
• With the 1.1 update, all NPCs (excluding the Old Man and Santa Claus) now have randomly generated names. Many of the names are references to well-known characters from Legend, or in some cases Deities, or Higher Powers of some Religions. Some are even references to well known games or films.
• If you leave a bound NPC without rescuing him or her, the NPC will not be at the same location the next time you visit it.
• All female NPCs become irritable during a blood moon, snapping at the player when being talked to.
• NPCs can live in houses made from Demonite bricks.
• You can respawn Santa Claus by setting the date of you computer to 25-30 december