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Bats
TOP 100 ZELDA SITES!
There are three Bat Fountain caves on Kohilint Island. If you sprinkle magic powder on the fountain a bat will appear and give you the ability to carry more items. This is very useful for the later dungeons.
MYSTERIOUS WOODS:
1 screen north of the log cave, there is a single stone. Lift it with the power bracelet. The bat will give you the ability to carry more magic powder.

MARTHA'S BAY:
West of the mermaid statue, there is a screen full of bushes with holes blocking them. Use the feather and sword together by jumping 2 holes and slashing the bushes. Go down the stairwell. Swim through the cave and you will come up into daylight again. Go left a screen and down another stairwell. The bat will give you the ability to carry more bombs.

TAL TAL MOUNTAIN RANGE:
Near Dungeon 8. Right at the top. Pick up a stone to reveal a stairwell. Go down it and a bat will give you the ability to carry more arrows.