PokéBase - Pokémon Q&A
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I know how it works when its outside of battle but what about inside. Does it just pick up what ever item was used by the other pokemon or what

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"When an opponent or ally uses a held berry or a held one-time use item, Pokémon with Pickup gain the used berry or item if they are not already holding an item. A Pokémon with Pickup can also gain an item thrown at it using Fling. In double and triple battles if more than one Pokémon have Pickup, then only the faster Pokémon will pick up used items."
- Bulbapedia

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thanks mew