Wearing it prevents Beefalo from attacking the player during their mating season. However, they will still attack if the player strikes first. If the parent of a Baby Beefalo is killed, and the player is wearing a Beefalo Hat, the baby may start to follow the player, provided the player does not already have a follower.
When around Beefalo during mating season and especially when shaving them at night, wear this hat to keep from being attacked.
Players should take off the Hat when next to a fire (or replace it with a sanity-boosting hat) as the item's durability will go down with it on, and the fire alone is enough to keep the character warm.
This item used to increase the player's Sanity per minute by an unknown amount.
The previous crafting description was a reference to Star Wars Episode V: The Empire Strikes Back: when Han Solo cuts open a tauntaun to keep Luke Skywalker warm, he says, "And I thought they smelled bad on the outside!".
Despite having two horns on it, the Hat only takes one Beefalo Horn to craft.