The Rainbow-tipped Butterfly is arguably the hardest bug to catch in Palia. Spotting one is a rare occurrence in itself. It's described as a rare butterfly that got its beautiful coloring from dipping the tips of its wings in a Well of Flow, or so the ancient legends say. It could just be a product of evolution as well, but we'll never know the truth.
The one thing that can be said with absolute certainty is that the Rainbow-tipped Butterfly is hard to catch. Thankfully, there are a few things you can do to make the task easier and hopefully catch at least one without much hassle.
How to catch a Rainbow-tipped Butterfly in Palia

To start things off, you'll first need to get yourself a few times. Depending on how far you've progressed, it may take you longer than intended, but preparing is going to be key in catching this elusive bug (which, by the way, is labeled as Epic in terms of rarity).
You'll need two things to catch a Rainbow-tipped Butterfly: A Buzzy Jar and many Smoke Bombs. The Buzzy Jar will reveal the location of Rare Bugs for a short duration, allowing you to spot them more easily. Once spotted, Smoke Bombs will be needed to discombobulate the critter, allowing you to catch it.

There are four different Smoke Bombs, but the best one for the job is the Supreme Smoke Bomb. It's a bit pricy to make, but with a 100% catch success rate, it will ensure that you don't walk away empty-handed when out hunting for a Rainbow-tipped Butterfly in Palia.
When you have everything you need, you'll want to head over to Pulsewater Plains between 3:00 AM and 6:00 AM. It's recommended that you show up beforehand, as it will give you time to prepare mentally. At the given time, use a Buzzy Jar and wait until a Rainbow-tipped Butterfly appears.
Next, aim with your Supreme Smoke Bomb(s) and bring the critter to a standstill. When it's down, collect and add it to your collection.
To Summarize
To catch a Rainbow-tipped Butterfly in Palia, you will need to go to Pulsewater Plains between 3:00 AM and 6:00 AM. Use a Buzzy Jar to locate the critter, and then proceed to hit it with Supreme Smoke Bombs until it can be picked up and added to your collection. Consider using Sticky Smoke Bombs if you need to slow it down once alerted. It will make the process a tad easier.
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