I'm makeing a sidescrolling level but idk how to make terrain
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Welcome to Scratch!
First, this topic belongs to Help in Scripts; This forum section is for general questions about Scratch, not for "How to make xxx" questions. If you report this topic and say the moderators will take care of it (right on bottom)
Second, to your question: You can find useful information here, here, or look at this project.
Good luck!
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You can create costumes for sprites in the Paint Editor. Go to the costumes tab and click Paint at the top.
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