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When held in an adventurer's inventory, the dreamcatcher increases the speed at which its owner regenerates health and endurance whilst sleeping. It is a created enchantment, brought into existence by Magi through their ability of the same name.

Historically, dreamcatchers were used in creating a dust which was a key element in bringing forth Lord Pandemonium from His slumber within the Eileithyian Tree, and capturing His nightmares which had escaped into the mortal realm as He awoke.