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Every Pokémon has a level. When a Pokémon hatches from an egg, it will be level 1 in Gen IV and Gen V though level 5 in all other Gens, although, most wild Pokémon will have a much higher level, since it probably leveled up in the wild.
When a Pokémon gains enough exp, or is given a rare candy, it's level will increase by 1. This is called leveling up. A Pokémon will also grow many levels in a Day Care Center depending on how long it stays. When a Pokémon levels up, its base stats will increase, and it will gain some HP. It also may learn a move or evolve. The maximum level a Pokémon can grow to is level 100.
Additionally, there are Pokémon known as underleveled Pokémon, which are evolved Pokémon that cannot be at that level when owned by the player. They can be found in the wild or by trainers.
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