Shandalar's Cloak is a quest item that must be recovered in order to leave Ice Island. The cloak has no magical power (at least for mere mortals) and cannot be worn.
Description[]
| “ | This cloak was originally stolen from Shandalar by the powerful mage Semia, presumably for the powerful magics woven into the fabric. How it has come to be in your possession and the fate of Semia are complete mysteries, and ones not likely to be solved. Much like the exact workings of the cloak, which would remain a mystery even to a powerful mage. | ” |