Originally Posted by Psychocandy2010
Yeah...in the first town of the game go to the building just to the left of the town entrance. There's two pools in the first room. The left hand pool restores your hp/mp while the right hand pool restores the life of anyone who has shuffled off the mortal coil.
Basically, the game treats death as a "status." There are many towns and castles with status cancellation fountains (the ones that just say "Nothing happens" when you use them when your characters are all normal), which you can use to remove the death status and revive your character.
Unless you're in a boss fight that you are about to beat, though, it's better to quit out of a fight than to use Phoenix Downs (which are relatively scarce). Just make sure to flush the game from your active dock. Hit continue when you restart, and you'll end up exactly where you left off before the fight. It's a bit of a cheat, and if you're a purist I would avoid it. It does help to save your sanity when an unfortunate encounter is about to wipe off an hour of progress.