Having strong equipment is crucial in Nioh 3 if you want to survive. Due to the RNG loot structure of the game, you will constantly be getting new weapons and armor with unique special effects attached to them.
While you can level up equipment by simply using them in combat and filling up the Familiarity meter, you can also upgrade them at the Blacksmith through the Soul Match feature. However, this feature is completely missable and is not introduced during the main story progression.
Instead, players must complete a specific side quest to unlock it. Read further to learn how to unlock Soul Match for upgrading weapons in Nioh 3.

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How to Unlock Soul Match in Nioh 3

In order to unlock Soul Match and upgrade weapons in Nioh 3, players must complete the “A Fierce Flame” side quest. This side quest is given by the Blacksmith at the Eternal Rift and becomes available after defeating Jakotsu-baba, the second main boss of the game. This boss is encountered in the first major crucible.
After defeating Jakotsu-baba, return to the Eternal Rift and speak to the Blacksmith. She will ask you to find a special item in the Lake Sanaru region, officially starting the A Fierce Flame quest. Luckily, the waypoint where you need to go is marked on the map.
The image below shows the exact location of where you need to go to complete the A Fierce Flame quest in Nioh 3.

Keep in mind that on the path to get here, you will need to complete a Lesser Crucible and destroy the gate to open the path forward.
Once you get through the Lesser Crucible, you will encounter a building that is high above the ground on top of cliffs.

Since the bridge is broken, you can’t jump across and reach the building. Instead, you need to take a left onto the docks, where you will find a small opening in the rocks, leading to a Spirit Vein.

Progress your way to the top by completing the short platforming sequence and grab the Fire Magatama from the building, which can be found resting on the only desk inside.
Once you have the necessary item for the A Fierce Flame quest, return to the Blacksmith at Eternal Rift and hand it over. This will officially unlock Soul Match and Soul Extraction.
Soul Match and Soul Extraction Explained

Soul Match and Soul Extraction go hand in hand in Nioh 3. The former allows you to upgrade your weapons and armor, making them stronger and having higher stats. To do this, you need Yellow and Viridian Soul Ores, which are thankfully acquired through Soul Extraction. Some weapons require only Yellow Soul Ores, while some will require both Yellow and Viridian Soul Ores
Soul Extraction allows you to disassemble your unwanted armor in exchange for Soul Ores, allowing you to upgrade equipment through Soul Match. The amount of Soul Ores you receive from each piece of equipment depends on its rarity. Only the rarest (Purple) items reward Viridian Soul Ores, but everything rewards Yellow Soul Ores.
The game makes this system easy for you, as you can just select the “Select All” button to select every single piece of equipment that is not currently equipped and disassemble them for a ton of Soul Ores.

