It is unlocked at experience level 5.
It is stored in the barn.
A sure way to get dynamite is to buy it with 3 dia or to hire Tom and ask him to find it.
Dynamite can also sometimes be found in roadside shops for 1 to 25 coin per stick.
Finally, dynamite can be randomly obtained when players:
- harvest crops
- collect products or animal goods
- cut down trees and bushes
- feed pets
- open mystery boxes and mystery packages
- spin the Wheel of Fortune
- participate in global events
- fully satisfy a town visitor
- win prizes in derbies
- use mystery nets in the fishing lake
- watch a Night at the Movie trailers