The Parachute slows the user down when falling, potentially preventing lethal damage. It can be used to safely get down a cliff, jump into an enemy base without taking fall damage, or simply save yourself if you accidentally dismount a flying creature. However, a Parachute can only be used once, meaning that one should consider carrying multiple of them if they spend lots of time in the air or in areas with steep cliffs.
Notes
Each Parachute has a Weight of 3, so carrying too many around at once can very quickly stack up. To avoid this, carry around the materials, which add up to less than half the weight (1.1 as opposed to 3).
While falling, use the Parachute from your inventory and hold your backwards movement key (default S) to slow your fall. It does not automatically activate, so it's a good idea to have it in your hotbar if you think you'll need it.
To deactivate the Parachute and resume falling normally, press your Jump key.
You can move in different directions while in flight by pressing your set movement keys, though you'll need to hold the key for a while to get some movement in the direction you want.
The Parachute can be steered only slowly in midair, which can lead to your death if you aren't careful (Parachuting into a dangerous enemy or hitting a cliff face which deactivates the parachute so you fall to your death).
It is easily possible to reach too much downward momentum for the Parachute to save you, even when falling from great heights. With this in mind, it's often useful to keep a Grappling Hook on hand to assist in controlling your destination. Simply grapple and do not reel yourself in, then disconnect once you hit tension. This trick can frequently save you from an extreme velocity situation.
The Parachute can be used as a form of air travel, given a high enough starting point and a player with a high enough Movement Speed. Horizontal momentum seems to be almost perfectly conserved from the point of the Parachute opening, and there is relatively little vertical drop. Sprinting and then immediately opening a chute can allow one to bypass difficult terrain without a trained flyer. This works best from the peaks of high mountains, and with enough movement speed it is possible to travel great distances across a map. It is advisable to bring at least one reserve Parachute for your trip, as it is quite easy to overshoot your target or stay airborne for longer than intended. Dropping from the chute by hitting the Jump key and subsequently opening another chute when closer to the ground is the easiest way to lose altitude quickly.
Alternatively, the player may aggro another creature and use the knockback from their attack for momentum.
See also: 
Weight of 3, so carrying too many around at once can very quickly stack up. To avoid this, carry around the materials, which add up to less than half the weight (1.1 as opposed to 3).
Grappling Hook on hand to assist in controlling your destination. Simply grapple and do not reel yourself in, then disconnect once you hit tension. This trick can frequently save you from an extreme velocity situation.
Movement Speed. Horizontal momentum seems to be almost perfectly conserved from the point of the Parachute opening, and there is relatively little vertical drop. Sprinting and then immediately opening a chute can allow one to bypass difficult terrain without a trained flyer. This works best from the peaks of high mountains, and with enough movement speed it is possible to travel great distances across a map. It is advisable to bring at least one reserve Parachute for your trip, as it is quite easy to overshoot your target or stay airborne for longer than intended. Dropping from the chute by hitting the Jump key and subsequently opening another chute when closer to the ground is the easiest way to lose altitude quickly.
Harvesting
Preservation
Navigation/Travel
Cosmetic
Other