Chao

A Chao (pronounced "chow") is a baby-like lifeform found in Chao gardens. They can be raised by people. Chao are somewhat complex, responding to stimuli, they have moods, they require food, and they can be loving or fearful.

Evolution
Chao are mysterious but lovable creatures that almost exclusively in Chao Gardens. Spawned by Chaos, Chap hatch from eggs. They go into a cocoon before entering adolescence and then again at the end of adulthood, emerging as an egg once more. In special cases, after a number of "resurrections," a Chao may evolve into a form that makes it immortal. (StH: #171)

After a while Chao create a cocoon and evolve into a more mature form. It will mature into a form that features both its highest leveled stat (running, power, flying or) and its alignment. During this evolution, a Chao raises one grade up in the level of its type. (StH: #173)

Alignment is determined by how the Chao was treated before its evolution. Every three times that a heart appears above a Chao's head and replaces the standard emotion, the Chao darkens or lightens a shade, a darker shade coinciding with becoming a Dark Chao, and vice versa. A Chao's physical appearance is the chief indicator in understanding the alignment of a Chao. They are colored green and blue. Neutral chao are created by balancing contact by both Hero and Dark characters. They are able to look like a lot of different characters. (StH: #173)

Chao Gardens
A Chao garden is simply a forest area with plenty of water or a small lake.