A Molotov Cocktail is an improvised thrown explosive device seen in Jagged Alliance and Jagged Alliance: Deadly Games.
Molotov Cocktails cannot be found in the wild and are only concocted by your mercs. They act like Hand Grenades with some caveats - they do not stack in the inventory, taking up much more room when carrying more than one. This may change in Deadly Games. However, they still go off with a very harmful bang, destroy doors and even appear to have a similar blast radius to the ordinary frag bomb.
Molotov Cocktails are crafted from the seemingly useless junk found lying around the island. The correct order is: Take one Glass Jar and combine with it a can of Gas, a tin of Oil and a cotton Rag. If you don't follow this order, you might not get a Molotov Cocktail in perfect condition. While the condition of the ingredients has some effect, the by far most important one is theexplosives skill of your mixer. Clueless laymen might turn good components into a worthless 1% condition dud, while masters like Fidel reliably make flawless firebombs, not matter how scuffed up the parts were.
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.