Katara's necklace

Katara's necklace is a blue choker with a Water Tribe pendant on it. It is a family heirloom, having been passed down from Gran Gran Kanna to Katara's mother, and then to Katara herself.

History
The necklace is in fact a betrothal necklace. 60 years before the events of the series, it was carved by Pakku of the Northern Water Tribe using Waterbending, and presented to a young Kanna as a token of affection. Kanna did not want to marry Pakku, however, and she fled to the Southern Water Tribe. She kept the necklace with her thereafter.

At an unknown later date, Kanna passed on the necklace to her daughter-in-law, the wife of her son Hakoda. After her death, the necklace passed on to the next generation, to the young Katara.

In "Imprisoned", Katara explained to Haru that she kept the necklace because it was the only thing she had left of her mother, although it wasn't enough. At the end of the episode, she lost the necklace while escaping from the Fire Nation prison, and it was found by Zuko.

In "The Waterbending Scroll", Zuko reveals that he has the necklace, and promises to return it to Katara if she will turn on Aang. Katara refuses, and Zuko keeps hold of the necklace.

In "The Fortuneteller", Aang makes a new necklace for her out of flowers and Sokka's fishing line. It is Katara's modelling while wearing this necklace that kick-starts Aang's crush on her in this and future episodes. In this episode, Katara is rarely seen wearing the new necklace, and it is never seen in later episodes.

In "Bato of the Water Tribe", Zuko gives the necklace to the bounty hunter June, whose Shirshu uses the scent from the necklace in order to track down Katara. In the bending duel at the end of the episode, Aang successfully recovers the necklace from Zuko and returns it to Katara, who thanks him with a kiss on the cheek.

In "The Waterbending Master", Yugoda realises that Katara is Kanna's granddaughter by seeing the necklace - the old healer explains to Katara that Kanna was once from the Northern Water Tribe. The appearance of the necklace during Katara and Pakku's duel is what eventually convinces Pakku to put away his old prejudices and teach Katara Waterbending.

In "The Headband", while Katara is modelling her stolen Fire Nation outfit, she also wears the necklace. Aang comments on this, and so Katara reluctantly agrees to remove it since it is so obviously from the Water Tribe.