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Items are extremely important. Make sure to have a good stock of them throughout the game. This makes sure that you can save your MP in critical times by using an item instead of casting a spell. Tents are probably the most important item. Keeping your health full is always a good thing.

Item Name
Effect
Potion Restores 100 HP
Hi-Potion Restores 500 HP
X-Potion Fully restores HP
Ether Restores 100 MP
Turbo Ether Fully restores HP
Elixir Fully restores HP and MP
Megalixir Fully restores HP and MP for the entire party
Phoenix Down Restores a dead character
Tent Fully restores your parties HP and MP, can only be used at a save point or on the world map
Luck Source Raises Luck
Speed Source Raises Dexterity
Mind Source Raises Spirit
Magic Source Raises Magic Power
Guard Source Raises Vitality
Power Source Raises Strength
Grenade Explosive damage against one opponent
Shrapnel Explosive damage against all opponents
Right Arm Explosive damage against all opponents
Dream Powder Casts Sleep on all opponents
Mute Mask Casts Silence on all opponents
War Gong Casts Beserk on all opponents
Loco Weed Casts Confuse on all opponents
Fire Fang Casts Fire 2 on all opponents
Fire Veil Casts Fire 3 on all opponents
Antarctic Wind Casts Ice 2 on all opponents
Ice Crystal Casts Ice 3 on all opponents
Bolt Plume Casts Bolt 2 on all opponents
Swift Bolt Casts Bolt 3 on all opponents
Earth Drum Casts Quake 2 on all opponents
Deadly Waste Casts Bio 2 on all opponents
M-Tentacles Casts Bio 3 on all opponents
Stardust Casts Comet 2 on all opponents
Holy Touch Casts Despell on one ally
Ink Casts Darkness on all opponents
Vampire Fang Takes HP from an opponent and gives it to your character
Ghost Hand Takes MP from an opponent and gives it to your character
Dragon Scales Water elemental damage on all opponents
Impaler Changes one opponent into a frog
Shrivel Casts Mini on one opponent
Molotov Fire elemental damage on one opponent