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The soul sword can be obtaned at the creation of a new world, by choosing between a soul dagger, soul sword, or soul greatsword by highlighting the wooden sword you spawn with and pressing "R". A menu comes up where you can choose among the three weapons. After you have chosen your sword, you can press "R" again to level it up by spending your skill points. This swords base stats are: Base Damage: 4, Critical Hit: 2, Hardness: 0.1, Knockback: 1.0. At first you cant even block with the sword, but when you upgrade the sword to level 2, it automatically adds the blocking feature. Levelling the sword gives it a series of upgrades: A stat is upgraded by default, you gain 1 point to spend on upgrading a stat of your choice, or 1 point to spend on a vanilla enchantment. The point system for enchanting is 1 point = 1 level of an enchantment of your choice(every five weapon levels you get to select one enchantment. Every ten weapon levels you can upgrade damage,critical, hardness, or knockback). At level 16, the soul sword starts glowing the same way a regular enchanted item does. At level 13(maybe) the blocking ability upgrades to master blocking. Blocking with this perk obtained makes a buff appear for the duration of your blocking. The buff appears to negate all external damages, but you are stil vulnerable to added effects such as poison from scorpions and starving damage.

A chart of what you get for each level.
Level Perk


1 1 Stat Point N/A
2 The ability to block with this sword. N/A
3 +0.5 Hardness Only 0.4 if your hardness was still 0.1
4 +0.1 Knockback N/A
5 +1 Enchantment Perk +1 Damage
6 No change noticed. (Glitch?) N/A
7 +0.3 Hardness N/A
13 Master Blocking(?)
16 Enchanted Glow