Candles are rarities that are available from level 10.
You can get them as part of rewards for fulfilling requests at the Dragôn Mysterium, or find them in chests and gifts scattered across the islands.
You will also get candles when you clear away fallen trees and colored stones, and open various wooden and stone boxes. Starting from level 56, you can craft candles at the Smelter.
Candles will help you do many things on the islands, such as producing lanterns at the Ceramics Workshop, as well as upgrading the House, Dinner Table, Loom, Hammock, and Stone Poem. You will also need them to upgrade a number of buildings on Dune Island and Emerald Island.
If you need more help on finding resources in Elf Islands, check out our article Resource Sites!