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There are 4 difficulties that Terraria offers: Journey, Classic, Mediumcore, Hardcore. You can read more information about them here.

Change the difficulty of a new world

1. Login to the Fragify panel and select your Terraria server.

2. Stop the server and go to the Configure option on the left-side menu.

Configure

3. Find Difficulty variable and set it to the desired number of difficulty in which 0 = normal, 1 = expert, 2 = master, 3 = journey. Note that for journey difficulty, you will need to create a journey character in the game.

4. Once done, start/restart the server, and the world will run on the chosen difficulty.

Change the difficulty of an existing world

1. Login to the Fragify panel and select your Terraria server.

2. Stop the server and go to File Manager. Navigate to the saves/Worlds directory, where you will find the theNameOfYourWorld.wld world file.

3. Click on ... and select the Download option on the menu.

World File Download

4. Once you have acquired the world file on your PC, you need to download the Terraria Map Editor/TEdit from here.

5. Make a backup of your world for safety and open your world file in TEdit.

6. Once the map has been opened, click on World Properties and find the option called Game Mode. Please change it to the difficulty you want and save it by clicking File => Save.

TEdit

7. Now since the difficulty has been changed, all we need to do is upload the world to the same directory. Return to your File Manager and go to saves/Worlds. Click on the Upload button or use the drag and drop function.

8. Start your server, and it should load the world you have changed the difficulty on.

Change the difficulty of a TShock world

1. First, you will need to become an admin on your TShock server. You can read about it here.

2. Login to the Fragify panel and select your Terraria TShock server.

3. Input in Console's input window with Type a command.. one of the following commands that will change the difficulty of your world:

/gamemode Normal
/gamemode Expert
/gamemode Master
/gamemode Journey