The Luck Incense is located in the northwestern corner of the Ravaged Path on Route 204. You will need Pokémon that can use Rock Smash and Surf to reach this area.
In battle, the Luck Incense is a Hold Item that doubles the money earned from trainer battles; outside of battle, the item is used in Pokémon breeding to create Happiny Eggs.
Luck Incense Location (Step-by-Step)
The Luck Incense is located inside the Ravaged Path, which is a cave on Route 204 that sits between Jubilife City and Floaroma town.
When you’re ready, Fly to Jubilife City and head north from the Pokémon Center.
Exit Jubilife City through the northern entrance.
This will take you out onto Route 204.
Head all the way north on Route 204 until you come to the mouth of a cave—the Ravaged Path—and head inside.
Once you’re in the cave, take a left down the corridor.
Use Rock Smash on the rock obstacle in your way and keep going left.
Then you’ll come to a dead end with a stream of water.
Use Surf on the stream and head north on this waterway.
Continue north until you reach the next section of land, then step out of the water at that point.
You’ll then want to use Rock Smash to clear the rock blocking the path to the left, and then move up that pathway to pass through the corridor.
Continue smashing rocks as you head north through the linear hallway.
In a small cave chamber at the end of the corridor, you’ll see a Poké Ball item on the ground.
Smash more rocks to reach it and head into this corner of the cave.
Pick up the Poké Ball to receive the Luck Incense.
Note: This is the only Luck Incense in the game, so be careful not to accidentally lose or sell it.
Using the Luck Incense
The Luck Incense is an extremely useful Held Item that doubles the money you’ll earn in battles.
Finding this item as soon as possible can help a lot with early game money. Or you could also pick up the Amulet Coin too, since it has the same effect.
Either way, these held items can make sure you aren’t destitute later in the game.
For the Luck Incense to activate in battle, the holder must be sent into the fight at least once before the battle ends. There is no set number of turns the holder needs to stay in battle; as long as they make an appearance, the cash reward will double.
Outside of Battle
You can breed a baby Happiny with the Luck Incense as a held item.
You’ll just need two Chanseys or Blisseys of opposite gender (or one Chansey/Blissey and a Ditto, or a Pokémon from Chansey’s Egg Group).
Then you’ll want to place them in the Solaceon Day Care Center and give one Pokémon the Luck Incense to hold. This can result in them producing Eggs containing Happiny, Chansey’s pre-evolution form.
Breeding Happiny with the Luck Incense
First, get a Pokémon that can breed with Chansey (could be another Chansey) and give it the Luck Incense to hold.
Then take both Pokémon to the Day Care in Solaceon Town. This is located northwest of the Pokémon Center.
Give both Pokémon to the Day-Care Lady at the front desk.
After walking around for a while, return to the Day Care Center and speak with the Day-Care Man outside.
If your Pokémon have made an egg then he will give it to you.
You can also check your Pokémon’s Egg status on the Day Care Checker Pokétch App screen, which will display a picture of an Egg if one is produced.
To hatch Eggs, you just have to carry them in your party while you take a certain number of steps.
For Happiny, you’ll need to take between 10,280 and 10,536 steps in total for the egg to hatch.
Tip: If you have a Pokémon in your party with the Flame Body or Magma Armor Abilities, the total number of steps will be halved.
If you follow this process, a Happiny should eventually hatch from the Egg.
The Luck Incense is not consumed at any time, so unlimited Happiny Eggs can be created as needed.