Upon death all of your Souls will be dropped as a bloodstain. They can be retrieved if you visit the spot you died at and pick them up, although dying again will remove the bloodstain, meaning you will lose your Souls.

When players die in other game worlds, at times you can see the bloodstains they leave behind. You can inspect other players' bloodstains in your world to watch their last moments and get clues about how they died.

Information here is accurate for version 2.15.

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