From the Super Mario Wiki, the Mario encyclopedia
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A Green Potion is a special item that is found in the game, Paper Mario: The Thousand-Year Door. The special item is something left over from the X-Naut lab technicians that Princess Peach used, with three other potions (Blue Potion, Red Potion and Orange Potion) under TEC-XX's advice to make herself invisible to sneak into Sir Grodus's room to steal a data disk for info that TEC-XX required. After Peach turned invisible, the Green Potion could also return the princess to her normal state.