While there isn't traditional 'equipment' to upgrade, both Sonic and the Werehog have extensive upgrade trees that require Experience Points (EXP) to advance. EXP is earned by completing stages, defeating enemies, and finishing side quests. Additionally, certain items can directly boost your EXP gain.

- Experience Points (EXP): The primary resource for leveling up Sonic and the Werehog. Earned from almost all activities.
- EXP Boosters: Rare items that temporarily increase the amount of EXP you gain from activities. Use them before tackling long stages or combat-heavy areas.
- Rings (for Skills): While not an upgrade material, Rings are used to purchase new skills for both characters from the Skill Shop.
Focus on earning as much EXP as possible, especially for the character whose stages you find more challenging. Replaying stages and completing Hot Dog Stand challenges are excellent ways to farm EXP. Remember to visit the Skill Shop regularly to see what new abilities you can unlock with your collected Rings.