Upgrading weaponry is a crucial element in increasing damage output, combat performance, and effectiveness of a unit in battle in Fire Emblem Engage. The continent of Elyos is filled with dangerous opponents who wish harm upon Alear and their allies, and these enemies can make quick work of player's units if they are poorly equipped. Of course, it is possible to find or be rewarded with new, stronger weapons as adventurers progress through the main campaign. However, it is often more optimal to stick with a specific weapon for a certain class and enhance its capabilities by upgrading it at the Smithy.
The Smithy is an NPC shop location in Fire Emblem Engage that becomes accessible once players have cleared Chapter 5: Retaking the Castle, after which they can enter and explore the Somniel. The Somniel has been stated to be a hub area that "hosts a variety of facilities and activities for the player to prepare for battles and strengthen bonds."
Accordingly, players can visit the Smithy at the start of Chapter 6: The Stolen Ring. This NPC vendor is located within the Plaza and is fairly hard to miss.
Upgrading Weaponry in Fire Emblem Engage
After entering the Smithy and viewing their shop menu, players will notice two options. One is for weapon refinement, while the other is for engraving armaments. Engraving weapons involves imbuing the armament with one of the players' Emblems, boosting different stats depending on the chosen Emblem. This feature is doubtless useful, but those looking to upgrade their weapons in Fire Emblem Engage will need to focus their attention on weapon refinement.
Refining a weapon involves paying the Smithy an amount of currency and metal materials to slightly increase the armament's stats. In the early game, performing refinement is typically not worth the resources for basic weaponry. However, players are encouraged to always invest in upgrading unique and legendary weapons.
According to gameplay footage of Fire Emblem Engage by YouTuber Fire Emblem materials with the Smithy. For instance, 110 Iron can be traded for 1 Silver. This feature is a great quality-of-life mechanic, but players should note that they will often gain their target metal at a loss.
Source: Gamer Guides | YouTube/BenFM