TL;DR
Hytale server hosting Update 3 is a practical one: it adds an early version of animal taming, introduces user-placed map markers, and gives farming a huge quality-of-life bump with sickles that can harvest multiple crops at once. On top of that, climbing is smoother, navigation is clearer, and a bunch of combat and inventory friction has been trimmed down.
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Hytale Update
The team is trying to make Early Access updates feel more predictable: weekly pre-release patches for testing, then a stable update every few weeks once things settle. They also mention larger chapter-style content drops tied to the Cursebreaker arc, but Update 3 itself is mostly about systems and usability, not story.
Animal taming is here, but it’s the early version

This update adds taming for some of the friendlier animals. The core idea is simple: have the animal’s favorite food in hand, then you can tame it. Once tamed, animals behave less like constant flight risks and more like creatures you can keep around your base without feeling like you’re babysitting pathfinding.
What you can do with tamed animals right now:
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Pet them with an empty hand
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Feed them once in a while
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Some can be milked, sheared, or mounted
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They will not run away from players unless they get hit
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They can occasionally greet players
Practical expectations (so you don’t get annoyed):
Treat this as a first pass, not a deep companion system yet. The patch notes frame it as an early version, so if you’re hoping for complex bonding or commands, that’s probably not the goal of this build.
For safety, don’t smack your own tamed animal by accident. Being hit is still a trigger for them to bolt.
Map markers: your map finally becomes your map

User-placed map markers are one of those features that sounds small until you use it for a week. You can drop markers anywhere, name them, pick an icon and color, then share them in multiplayer. There are also new settings to toggle marker visibility on the map and compass, and you can delete markers from the map context menu.
A clean way to use markers without turning your map into confetti:
Pick 3 categories and stick to them, for example: loot spots, danger spots, and build plans. Name markers like you’ll read them later, not like you’ll remember everything forever.
Extra navigation touches bundled in:
Player names are now always rendered on the map and are easier to read when zoomed in
The compass shows different icons based on vertical distance (above or below you)
Map marker icon resolution and map text clarity were improved
Farming got a real upgrade: sickles
Hytale Update 3 patch notes adds sickles that can harvest multiple crops in a single swing. That’s the difference between farming feeling like a chore and farming feeling like a quick loop you do between runs.
If you want the sickle to feel good immediately:
Keep your early plots compact and aligned so one swing covers more tiles. The tool helps most when your farm layout is tidy.
Climbing feels less sticky
The climbing overhaul updates ropes and similar climbing interactions, letting you sidestep, drop down, and rotate around ropes. In practice, this is a movement quality change: fewer awkward moments where you fight the controls instead of fighting enemies.
Fire spread and grass spreading: world simulation is turning up

Two world systems show up here:
Fire spread system + Goblin Flamethrower
There’s a new fire spread system (described as a fluid ticker) and a Goblin Flamethrower, but it’s Creative mode only for now. So it’s a feature you’ll “notice” more through experimentation than through normal progression, at least in this update.
Grass spreading
Random block ticking and grass spreading are now in, which matters for how the world ages around your builds over time.
Combat and item changes you’ll feel without reading patch notes

Update 3 is also cleaning up a bunch of combat consistency:
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Weapon tier damage and upgrade differences were adjusted where they were inconsistent
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Spears should now stack up to 5 and be throwable across all spear types
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Ranged aiming ballistics were updated (with improved accuracy mentioned)
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Shortbows and crossbows can pull ammo directly from your backpack
Necromancy Grimoire also gets improvements that make summons behave more sensibly:
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Summoner and summons no longer damage each other
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Summons respond when the player is attacked (not only when attacking)
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Summons are faster and more aggressive
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There’s more variety in skeletal minions, including a ranged variant
Quality-of-life note
These are the kinds of changes you stop noticing after a few days because they just remove friction:
Inventory and interaction:
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Sort keybind works in player inventory
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Take All for processing bench output
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Shift-dragging transfers items faster between inventories
Crafting and benches:
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Some early crude ammo, weapons, and tools now craft instantly
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Builders Bench craft time reduced (3s to 2s)
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Chicken Coop craft time reduced (4s to 2s)
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Farming Bench tier requirements were adjusted for some items (including Chicken Coop tier requirement reduced from 5 to 3)
World behavior:
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Doors no longer close when blocked by entities or players
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Teleporters require you to clear a short distance before reuse
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Minecarts no longer move when stuck
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Large Kweebec Chests support placing blocks on top
There’s a clear push to support modding and server ecosystems more cleanly:
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Anchor UI system (lets server plugins add UI elements to client pages like the world map)
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Mod enable/disable support from a save’s mods folder
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Server version checks for plugins and asset packs
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Warnings and validation improvements around missing mods and duplicate plugins