The Headband is necessary for the Mereth's hairband quest in Baldur's Gate II: Enhanced Edition. After the quest starts, the item can be found in one of the crates in the Bridge District where Mereth was rescued by Neera in the cutscene. It can be returned to her in the Hidden Refuge, where she will reward Gorion's Ward with the Wooden Horse Necklace.
Description[]
| “ | This is a simple hairband. Its style is modest, functional, and of a type often worn by commoners. It once belonged to the mother of Mereth, a young wild mage. | ” |