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A Graveyard (or Cemetery) is found in one of the Forest patches of a world's Mosaic Biome with a layer of fog covering the ground. It contains numerous Graves (with and without Headstones) and often has Gold Nuggets lying on the ground. There are few Trees in this biome and occasionally a few Boulders.
Graveyards are a good source of Gold Nuggets for players just starting out. Any Gravedigger Items acquired from digging up Graves can be traded to the Pig King for even more Gold Nuggets. Graves can sometimes contain Red Gems, Gears, Blue Gems, etc., but digging too many Graves at once will reduce a player's Sanity level significantly. Additionally, each Grave has a 10% chance to spawn a Ghost when dug up.
- In the Reign of Giants and Shipwrecked DLCs, Ghosts will come out of all graves on Full Moons, making Graveyard a relatively dangerous place to be in.