An improvised thrown explosive device seen in Jagged Alliance.
Molotov Cocktails must be crafted, and cannot be found. They are otherwise functionally identical to Hand Grenades, save for the fact they cannot be stacked in the same inventory slot.
Molotov Cocktails can be crafted by combining a can of Gas, a tin of Oil, and a Rag with an empty Glass Jar. The correct order is Glass Jar + Gas + Oil + Rag. If you combined it incorrectly or use low quality items, you will not get a 100% Molotov Cocktail. All of these components are consumed in creating the explosive.
Jagged Alliance 2 v1.13
Molotovs are also available in v1.13 - these can be made by combining a Bottle of Alcohol with a Rag. These versions of molotovs have a short throwing range (slightly shorter than smoke and mustard gas grenades), but detonate into a conflagoration of flames that spreads over the course of 5 rounds, while doing continual damage.
Unlike Smoke or Gas grenades, however, the flames of the Molotov don't impede vision.