Updates to Terraria have been released. The updates will be applied automatically when your Steam client is restarted. The major changes include:

NPCs

• New Enemy - Lava slime, this enemy leaves behind lava on death
  
• New Enemy - Hellbat
  
• New Enemy - Demon
  
• New Enemy - Jellyfish (Two variations, Pink and Blue)
  
• New Enemy - Shark
  
• New Enemy - Vulture
  
• New Enemy - Crab
  
• New Enemy - Antlion
  
• Changed the way worm enemies spawn.
  
• Bats, Hornets, and Eyeballs no longer enter water.
  
• Slimes now float in water.
  
• Only one giant slime will appear at a time.
  
• The Guide now seems quite knowledgeable in what an item can be made into if you show it to him.
  
• NPC shops now sell some items on certain nights, or after certain events.
  
• Devourers should no longer gain random other enemies as its head.
  
• The Nurse now charges the correct amount for healing.
  
• Bats now have a death sound effect.
  
• Talking to the old man at night will give the player a warning now before summoning the dungeon boss.
  
• Entering the dungeon before defeating Skeletron now spawns a new NPC instead of Skeletrons head. This should fix several issues with that event.
  
• Enemy coin drops have been adjusted.
  
• Man Eaters and Snatchers are no longer effected by knockback and can attack through walls.
  
• Eater of Souls and Hornet AI has been improved.
  
• Enemies now take up different amount of *slots* depending on AI style and strength. This will help balance conditions when there are lots of strong monsters spawned at once, such as Imps and Bone Serpents.
  
• Fish are no longer upside-down when out of water.
  
• Green slimes have been weakend so that start players can deal with them more easily.
  
• Slimes and Flying enemies no longer make a splash sound when hitting water.
  
• Items of Blue Rarity or higher no longer burn up in lava.
  
• Burning Skull has been renamed to Cursed Skull, and given different AI.
  
• Enemy casters have had their rate of fire slowed down.
  
• Meteor heads have less health, do more damage, and move slower.
  
• There are now slight size variations to the Eater of Souls and the Angry Bones.
  
• Skeletron has less defense and health.
  

Items

• New Feature : Buffs activated by Using Potions. Right click a buff to remove it from yourself.
  
• New Item : Hellfire Arrow.
  
• New Item : Sandgun.
  
• New Item : Guide Voodoo Doll.
  
• New Vanity Items : Familiar Wig, Shirt, Pants to be worn in Social slots to Hide your Armor.
  
• New Vanity Items : Doctors Shirt and Pants.
  
• New Item : Diving Helmet.
  
• New Item : Nights Edge
  
• New Item : Dark Lance
  
• New Item : Demon Scythe
  
• New Item : Trident
  
• New Item : Coral
  
• New Item : Cactus
  
• New Item : Spear
  
• New Item : Glowstick
  
• New Item : Sticky Glowstick
  
• New Item : Throwing Knife
  
• New Item : Poison Knife
  
• New Item : Silver Bullet
  
• New Item : Wooden Boomerang
  
• New Item : Blowpipe
  
• New Item : Seed (Ammo for Blowpipe)
  
• New Item : Obsidian Skin Potion
  
• New Item : Regeneration Potion
  
• New Item : Swiftness Potion
  
• New Item : Gills Potion
  
• New Item : Defense Potion
  
• New Item : Mana Regeneration Potion
  
• New Item : Magic Power Potion
  
• New Item : Featherfall potion
  
• New Item : Spelunker Potion
  
• New Item : Invisibility Potion
  
• New Item : Shine Potion
  
• New Item : Night Owl Potion
  
• New Item : Battle Potion
  
• New Item : Thorns Potion
  
• New Item : Archery Potion
  
• New Item : Water Walking Potion
  
• New Item : Hunter Potion
  
• New Item : Gravitation Potion
  
• New Item : Daybloom
  
• New Item : Daybloom Seeds
  
• New Item : Moonglow
  
• New Item : Moonglow Seeds
  
• New Item : Blinkroot
  
• New Item : Blinkroot Seeds
  
• New Item : Deathweed
  
• New Item : Deathweed Seeds
  
• New Item : Waterleaf
  
• New Item : Waterleaf Seeds
  
• New Item : Fireblossom
  
• New Item : Fireblossom Seeds
  
• New Item : Shark Fin
  
• New Item : Feather
  
• New Item : Gold Chest
  
• New Item : Bottled Water
  
• New Item : Tombstone
  
• New Item : Illegal Gun Parts
  
• New Item : Antlion Mandible
  
• The Silver Short swords recipe has been corrected, it is now craftable.
  
• Torches and candles no longer work when wet.
  
• Destroying a placed sign while you are reading it will no longer cause your character to become frozen.
  
• Rocket boots no longer require mana. They will provide lift for 1 second and recharge every time the player touches the ground or uses grapple. Lift speed has been slightly increased to offset loss of long flights. This makes the boots more viable for caster Characters.
  
• The explosion animation for bombs is now correctly displayed in multiplayer.
  
• There is now a message pop-up when the player receives an item.
  
• Filled Buckets may no longer be emptied into solid ground.
  
• Pots in the underworld now have a chance to drop hellfire arrows.
  
• Handgun and Phoenix Blaster have been reduced in size.
  
• Lowered the knockback of Muramasa.
  
• Reduced the damage of the Blue Moon.
  
• Flintlock Pistol and Musket have increased damage.
  
• Only normal trees drop acorns.
  
• Falling sand clumps are no longer carried by magic missiles/flamelash.
  
• Jungle armor is no longer a drop. It is a craftable set.
  
• Magic Mirror now requires mana to be used.
  
• Harpoon and Maces now correctly show the players arm animation.
  
• The arms dealer will sell unholy arrows at night after the Eater of Worlds has been defeated.
  
• Space Gun does more damage, but only penetrates 2 enemies.
  

Server

• Spam detection is less aggressive.
  
• Increase multiplayer security.
  
• Fixed a bug that could crash the server when the max amount of clients are connected.
  
• Added an option to enable additional cheat protection for servers.
  
• Servers now hibernate when no players are connected.
  
• Blood Moons now stop correctly if time is changed to day by the server.
  

Game Interface

• Upon death, A more specific death message will appear for other players, so they know how you died.
  
• The crafting and armor interface text will fade out when an item tooltip is in front of it.
  
• The Hot Bar now shows the name of the selected item.
  
• PVP now requires 5 seconds between Activation and Deactivation and visa versa to prevent PVP spam. The same cooldown is in effect for Team Changing as well.
  
• Added hotkeys for quickly drinking healing, mana, and buff potions.The healing/mana potion you use is based on the same principle arrows are. Top-Left most item first. The buff potions are all used at once.
  
• Holding right click on an empty space in the inventory will no longer make a sound effect as if something was there to be picked up.
  
• Defense totals are now shown in your inventory.
  

World Gen

• Tweaked the way sand is created during world gen. (Requires new world.)
  
• Oceans are now slightly larger and generation layout has been improved. (Requires new world.)
  
• Cactus now grow on sand.
  
• Coral now grows in the ocean.
  
• Chests can now spawn near the surface of the world. They will contain treasure that new players may find useful. (Requires new world.)
  
• Chests and pots now contain loot based on the level they spawn in. (Requires new world.)
  
• Gold chests will now spawn in some parts of the world. (Requires new world.)
  
• Corrupt chasms have less of a chance to spawn on jungles. They also now have a cave connecting most of the chasms. (Requires new world.
  
• Traces of demonite are created during world gen. (Requires new world.
  
• Surface jungles have been enlarged, and will override deserts. (Requires new world.