The small knife is more a tool than a weapon, but it is perhaps the best tool of its kind.  There is no better choice for delicate cutting work, and it seems the game's tool selection process will favor the small knife, if available, over all other forms of knife for skinning, cookery and crafting applications (as of 3.17).  A character who aquires a masterwork small knife will find that the lightweight blade performs admirably for all their knife-based needs.

The Dagger combat skill modifies damage done by small knives, but attacking with them is best left to an absolute last resort unless used to finish off an unconscious animal by bleeding.

Relic puuko1

A Finnish small knife

Blunt Edge Point Attack bonus Defense bonus Weight Value
0 1 2 Zero Zero 1 lb 160

An ordinary knife with a blade of about three inches long. The small knife is mainly designed for making fine woodworks. It is also commonly used when cutting ropes, removing birch-bark etc.

-  Game Encyclopedia

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