Normally, it can be used like any battering-type item in the game, but using a forward smash with it will make it launch a star projectile that can topple enemies over the edge of a map. The Star Rod deals 8% uncharged. Fully charged, the star projectile deals 8% while the strike itself deals 15%. The star rod has a set amount of 16 stars and will run out of ammo if used long enough. Oddly, dropping the Star Rod deals 11%, while throwing it with a smash attack deals 10%.
The Star Rod is the plot device of the NES game, Kirby's Adventure, where it acts as the power source of the Fountain of Dreams. King Dedede breaks the Star Rod into several pieces, handing a piece to one of his henchmen while keeping one for himself, this deactivates the Fountain of Dreams, rendering people from Dream Land unable to dream. Upon learning this, Kirby quickly ventures through several worlds to retrieve the Star Rod's pieces, defeating King Dedede's henchmen in the process. Kirby ultimately defeats King Dedede and reassembles the Star Rod, placing it back on the Fountain of Dreams, despite King Dedede's pleas to not do so. This frees an evil being called the Nightmare that was sealed by King Dedede when he took out the Star Rod. As the Nightmare escapes, King Dedede launches Kirby and the Star Rod to pursue it. The Star Rod serves as the final "ability" Kirby uses to battle the Nightmare's two forms. This ability allows Kirby to shoot an unlimited supply of fast star projectiles that are able to damage the Nightmare's core, Kirby is also able to damage it by directly hitting the Nightmare with the Star Rod itself if he jumps in the air. This is directly translated into the Star Rod's conversion for SSF2, by swinging it with a smash attack, the Star Rod releases star projectiles (which, unlike the original, has a set amount of ammo); being a bettering-type item, characters can damage with the Star Rod itself.