Magic Powder

Magic Powder is an item obtained in A Link to the Past and Link's Awakening. In both cases it is created for Link by a witch in return for bringing her a Mushroom.

In A Link to the Past, the Mushroom is found in the Lost Woods and handed over to the Witch at the Magic Shop just northeast of Hyrule Castle. Once Link has given her the mushroom, Link will have to wait awhile (by leaving the area) and return, where the Witch's Assistant will give him the powder inside the shop.

Magic Powder has a number of uses; it can dissolve bushes, turn Buzz Blobs into Cukeman, and turn Bubbles and Rabbit Beams into Fairies. It can also be used on various enemies, turning them into a Slime. Perhaps its most useful application is to awaken a sleeping bat in a well near the Dwarven Swordsmiths' shop. When sprinkled on the strange altar inside of the well, it will summon the Mad Batter, who rants at you for a while before halving Link's Magic Power consumption, effectively doubling it.

In Link's Awakening, Link must give the Sleepy Toadstool to Syrup before she can mix it, but it can also be won at the Trendy Game. It has a variety of uses; lighting torches, destroying enemies, and it has the ability to remove the spell put on someone when they eat a toadstool.

In Ocarina of Time, the Odd Potion may be a reference to the Magic Powder, as it is created from an Odd Mushroom and is actually a powder, rather than a potion.

Trivia

 * In A Link to the Past, if Link sprinkles some Magic Powder onto the cucco inside the house of one of the Informant Women in Kakariko Village, it becomes human and scold Link for teasing the other cuccos. If he sprinkles Magic Powder on the Sweeping Lady in front of her house, she turns into a fairy. If Link leaves the area and returns, she will be in the same spot, still able to be transformed.
 * Sprinkling some powder on a small pile of bones in the Yarna Desert in Link's Awakening will cause the bones to speak, offering Link advice on where to find a Heart Piece.