Cloak of Displacement

Cloak of displacement is a magical enchanted cloak that causes subtle changes in the image of the wearer, making the wearer harder to hit with ranged weapons and maigc. It is sold at the Ulgoth's Beard Inn.

In-game description
"The Cloak of Displacement is a magical item that causes subtle shifts in the image of its wearer. It has the power to actually shift an individual's image by much as six inches in any direction from their actual location. Aside from being an effective defense in combat, it has also been the cause of serious eyestrain amongst fellow party members."