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The Golden Carrot is a food item found in Fable and Fable TLC that can change night to day, as well as restore your health. There are a few ways to get Golden Carrots. One way is to dig them up. They can be found in various areas, including Greatwood Entrance (the small circular patch of dirt near the Orchard Farm entrance, on the other side of the rocks). Another way is to smash barrels.
The Golden Carrot is the counterpart to the Moonfish (which changes day into night).