The Horadric Cube functions by intimately binding the Prime Energies of the items stored within it. While most items can be crafted and enchanted by the skilled hands of a worker of the forge, there are those few items which are outside of a mortal's ability to create. The Cube is also needed to fuse the Staff of Kings and the Amulet of the Viper to make the Horadric Staff, as well as fusing Khalim's body parts and Flail together into Khalim's Will. The Horadric Cube is found in the Halls of the Dead in Act II, guarded by a monster called Bloodwitch the Wild. For example, a simple recipe would be two quivers of bolts into a quiver of arrows. The Cube's magic allows certain items to be transmuted into other items. Afterwards, Deckard Cain spent years researching the Cube and uncovering its secrets. They utilized the cube to meet their goals. Long after the time of the Horadrim, the cube was obtained by a group of heroes that pursued the Dark Wanderer. By later utilizing these elements within the cube, they could reassemble the original item. The Horadrim preserved important artifacts and equipment by separating them into the component parts for future use. The Horadric Cube operates via the principles of transmutation and alchemy. The Horadric Cube was then created in its stead. However, the original Cube was marred by dark methods and disastrous results, resulting in the order quickly determining that it was too dangerous for anyone to continue using.

However, it is known that the Cube stemmed from a more powerful version. The Horadrim and/or their writings were vague when it came to the origins of the Horadric Cube.

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