How do schematics work in Palworld?
Use one from your inventory to unlock that rarity tier of the item's recipe permanently; the schematic is consumed. Schematic 1–3 raise the item's stats, Schematic 4 is the legendary tier.
A schematic is a consumable that unlocks a higher-rarity recipe for one piece of equipment. Use it from the inventory and the recipe appears at the workbench permanently; the schematic itself is gone. It does not give you the item — you still craft it, and the higher tiers cost more.
The tier number is the rarity: Schematic 1 uncommon, 2 rare, 3 epic and 4 legendary. Each tier is its own row in the game’s item table with its own attack, defence, HP and durability — the Assault Rifle goes from 400 attack at Schematic 1 to 560 at Schematic 4.
Where they come from: chests, mostly. Legendary tiers sit in the oil-rig, seabase camp and Feybreak tables at chances under 2% per roll; lower tiers in dungeon chests and treasure-map dig sites; a few are sold at the Arena and Medal exchanges. 95 of the 138 equipment families have a legendary tier, and the schematics hub lists every one with its best source and the exact chance, read from the loot tables.
Other answers
Extracted from Palworld’s game files on (build 4570874460).