Crafting in Divinity: Original Sin Enhanced Edition is done by merging two or more ingredients into the required object. This required object can be the finished good itself, or be an ingredient to be further used to make the required items.
While Crafting is totally optional and may seem like too much work for some players, it is definitely worth a shot as it is very easy to do and can provide your characters with some great upgrades that may just be the deciding factor between life and death in a battle. For others, Crafting can help you save a few bucks by repairing equipment, especially in the early game where money is hard to come by.
You can craft almost anything in Divinity: Original Sin Enhanced Edition from food, books and scrolls to potions, armors and weapons, etc. Certain items can only be crafted using an anvil with a forge and some tools, while others can be crafted at any time from the comfort of your "Character Sheet" by simply dragging items onto one another. The anvils are generally found in cities whereas the tools can be bought or collected throughout your journey in the game.
Certain items also require you to have high enough crafting level before you can make them. The higher your crafting level, the better equipment and items you can make.
Throughout your journey in Divinity: Original Sin Enhanced Edition, you will come across Recipe Books that unlock recipes of various items you can craft. Generally these books can be sold after opening the first time, as you do not lose the learnt recipe. However, some incredibly high-level items will require the recipe books as a necessary ingredient. See the Grenades page for details on how to craft these new items