Carving netsuke requires a good design, patience and a variety of tools.
Netsuke carving has been an art form in Japan for more than 300 years. Netsuke are small, functional sculptures with holes through them. The netsuke was used as a toggle below items carried on a cord in a Kimono, Japan's traditional form of dress, to keep the items from slipping off the cord. Netsuke come in many shapes, including people and animals.
Materials
Netsuke can be carved out of many types of material. Some of the most popular are wooly mammoth ivory, antler, tagua nut, jade and boxwood. Artists also use walrus tusks, whale teeth, walnut shell and black coral.
Tools
Tools used to create a netsuke include small scrapers (knives), files, chisels, and electric grinders and rotary bits. You may decide to make or modify tools as you need them. Have a workable design before you start carving. There isn't much room for error in such a small piece.
Carving
Rough cut your netsuke to the general shape of your pattern. Carve areas to the desired depth, then round them. Add features like eyes, hands, hooves and duck bills. Refine features as you go, maintaining the shape you desire. Use a ball burr to add two holes to the bottom. Smooth the carving with a coarse abrasive pad on a mandrel with a power tool as stated in the e-book "Carving Netsuke" (see Resources). Finally, add details like feathers or hair. Your carving may be left natural, stained, oiled or waxed, depending on the material.