The machete appears to be a makeshift weapon, and consists of a sharpened lawn mower blade fixed to a wooden handle and further strapped in. It is the primary melee weapon of Caesar's Legion. Besides having a low Strength requirement it also does bonus limb damage, making it a good melee weapon for intermediate players. Holding down the attack button causes the player to swing it around and up at their target.
Additionally, the player has access to the Back SlashV.A.T.S. attack, which costs 16 AP to use (compared to the normal 20) but only inflicts 70% of the machete's normal damage. Unusually for melee weapons, there is no Melee Skill requirement to use this attack.
One can be obtained by talking to Caesar after returning from the vault under The Fort.
If you choose to kill Benny by dueling him in the arena, you can obtain a machete from his body.
One is automatically given to you when dueling in the arena, and it can be kept if you don't have one already.
You can find one in a pile of ashes near a dead body inside of Nipton, by a trailer on the right side of the street, along with a set of Caesar's Legion armor.
A larger version of the machete can be found at The Fort which is being sharpened by a Legion Blacksmith. However when picked up and used it will turn back to the normal size.
The machete will sometimes be considered a quest item for Legion quests such as during Laurifer Gladiator. This may be a permanent effect.