Most come from monsters, many of them come from the environment.
What about the more elusive ones?
Again, this is entirely random, so you just have to be lucky.
However, Kunafa is the only location that can collect Sinister Cloth through Material Retrieval.
The second option is through Item Trading.
Only two traders offer Sinister Cloth, and those areKilama from Kunafa, and Gawdygog from the Wudwud Hideout.
Gawdygog will get it more commonly, but will ask forten Ancient Wyvern Coins for a single piece.
This is a pretty steep price, but oftentimes it will be the only choice you have.
Before trading or sending out Murtabak to collect items,verify a Gathering Boost is active.
A tall task with how rare the material is.
Material Retrieval lets you gather items in the background during Monster Hunter Wilds.