Aside from waiting for periodic Hound attacks, the only way to acquire Hounds' Teeth is by visiting a Walrus Camp (in Winter) or a Hound Mound and fighting the Hounds and Blue Hounds that spawn. This can be extremely dangerous and should not be attempted unless adequately prepared.
Hound's Tooth can be crafted by Wilson if he has unlocked Transmute Icky Ⅲ in his Skill Tree. It requires 2 Bone Shards to be crafted in this way. Wilson with said Skill can also use 2 Hound's Teeth to craft 1 Bone Shards.
Hound's Teeth can sometimes also be obtained by destroying Tumbleweed and hammering Bones. Another method to get Hound's Teeth is to track and kill a Varg. The player can find a Varg by tracking down a Koalefant. However, tracking a Varg can be difficult as there is only a 5% chance on day 1, which increases over time to 33% chance on day 100.
Usage
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Tips
A player can farm Hound's Teeth by trapping a Varg in a walled enclosure (ideally Stone Walls, since Red Hounds cannot set them on fire). It will attract endless Hounds, which can be dispatched with a nearby array of Tooth Traps. The Hounds will be attracted by Monster Meat. Lure one into the traps using yourself as bait and it will drop Monster Meat, baiting the rest of the Hounds into the traps as well. The dropped Hound's Teeth can be used to replenish the Tooth Traps, making the farm largely self-sufficient. It's recommended to only farm for Hound's Teeth in Winter and Spring, as Blue Hounds are guaranteed to drop two Hound's Teeth, whereas a Red Hound will only drop one.
Trivia
According to Wickerbottom, Hound's Teeth contain brimstone, also known as sulfur. In folklore, sulfur is often associated with demons, implying that the in-game Hounds are Hellhounds.
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