Items are frequent in FINAL FANTASY VII and can be found in different places, won after a battle or stolen from enemies during battle. Here are some items and their effects:

Potion	Restores 100 HP to one character
Hi Potion	Restores 500 HP to one character
Ether	Restores 100 MP to one character
Phoenix Down	Revives one character
Tent	Restores whole party's HP and MP
Grenade	Explosive damage against one opponent
Hyper	Cures 'Sadness' to one character
Tranquillizer	Cures 'Fury' to one character
Eye Drop	Cures 'Darkness' to one character
Remedy	Cures 'Abnormal Status' to one character
Echo Screen	Cures 'Silence' to one character
Cornucopia	Cures 'Small' to one character
Maiden's Kiss	Cures 'Frog' to one character
Soft	Cures 'Petrify' to one character
Antidote	Cures 'Poison' to one character
X-Potion	Restores All HP to one character
Elixir	Restores All HP and MP to one character
Turbo Ether	Restores All MP to one character
Megalixir	Restores All HP and MP to whole party
Luck Source	Raises 'Luck' by one point
Speed Source	Raises 'Speed' by one point
Mind Source	Raises 'Spirit' by one point
Magic Source	Raises 'Magic Power' by one point
Guard Source	Raises 'Vitality' by one point
Power Source	Raises 'Strength' by one point
Shrapnel	Explosive damage against all opponents
Right Arm	Explosive damage against all opponents
Dream Powder	Uses 'Sleepel' on all opponents
Mute Mask	'Silence' all opponents
War Gong	'Berserk' all opponents
Loco Weed	'Confu' all opponents