World Tree Holy Water is an essential part of lategame crafting in Palworld, and players can only get it by defeating Pals inside the World Tree map. As of writing, there are no means of passively producing World Tree Holy Water, so you'll have to resort to farming enemies the old-fashioned way. Of course, there are some tricks to farming World Tree Holy Water faster in Palworld; one involves a simple change to your party setup, while another requires some tinkering with your settings.
How to Farm World Tree Holy Water in Palworld
Nearly every wild Pal on the World Tree map can drop World Tree Holy Water. While there are some spots that let you just pick up holy water off the ground, actively farming Pals will likely be the best way to get plenty of this crafting material more quickly. When I first started farming World Tree Holy Water in Palworld, I went in circles around the grove area near the World Tree's entrance, hunting down all the Mossandas and Grizzbolts I came across.
The area surrounding the Lacrymal Shoal waypoint southwest of the World Tree map is also a pretty good spot for farming World Tree Holy Water. There are plenty of Pals roaming around the shores of the river, including plenty of Solennes.
To make this method absolutely effortless, hunt at night. Non-Dark Pals will be asleep at this time, allowing you to get the jump on them without having every other Pal in the area become hostile toward you.
Bring the Right Pals
Now, if you want to farm World Tree Holy Water by hunting Pals, I strongly recommend bringing a Pal that increases the amount of materials dropped by Pals of specific elements. While I was farming Grizzbolts and Mossanda Luxes, I used a Menasting Terra since it increases Electric Pal drops by 40%, and since it's a Ground-type Pal, it's very effective against Electric ones. You can get a Menasting Terra from No. 3 Wildlife Sanctuary. Alternatively, you can use normal Menastings, or a Cryolinx Terra from western Feybreak.
Of course, you don't have to limit yourself to farming Electric Pals. Pretty much every Pal in the World Tree can drop World Tree Holy Water, so pick your favorite spot, bring a Pal that's effective against the ones native to the area, then go wild.
World Settings
If you're playing alone, you may want to consider adjusting drop rates via the World Settings menu. Go back to the World Select screen on the main menu, select your world, then click the Change World Settings button at the bottom. After that, click the Custom Settings button, then scroll down until you see the Dropped Items Multiplier slider. Increasing this setting will affect the number of items that enemies drop when defeated.
World Drop Locations
Another easy way to get World Tree Holy Water in Palworld is to go to the cave tunnel west of the Forbidden Laboratory waypoint and wait for ice to drop from the ceiling. When ice shards start dropping, there's a chance for World Tree Holy Water to appear around the area.
They're a little hard to spot since they don't have any physical objects that represent them in the world. Look for sparkles on the ground, and you'll get five World Tree Holy Water per pickup. The sparkling holy water drops last for about a minute or so, so be quick.
This method isn't as fast as farming Pals, but it's good if you want to just chill for a moment while still getting World Tree Holy Water.
When your screen starts shaking, that's your cue to look for fallen bits of holy water.