The Fishing Rod is a player made tool. It allows the player to fish through holes in ice created by an Ice Drill. It has limited durability and is a two handed item. It is made with 3 Twigs and 1 Rope, and requires a Workbench.
To fish, make a hole in the ice using an Ice Drill and click 'E' with the Fishing Rod equipped. A window with 2 bars should open. Let the bars settle down. After a while, a blue circle should appear - that's a sign a fish is biting. Click 'E' to start reeling it in. A blue fish then appears on the vertical bar. When the fish touches the bottom of the bar, you fail to catch it. The goal is to make it touch the upper edge of the bar by holding 'E' as long as possible several times. If you hold 'E' for too long (so the white slider reaches the right edge of the horizontal bar), you fail. Good luck!
The fishing rod will break after 16-17 fish are caught.