The Pencil had no use before,but since an update it can be used (like the pen) as a weapon,only used once,and can be used in crafting along with a piece of paper to make a doodle.The pencil is highly unreliable as a weapon because it is merely a joke to use it to fight,but to distract a zombie or make it stop holding you would be a rather good idea,unless you have a baseball bat.