This item appears to be a normal cloak, but when it is worn by a character its magical properties distort and warp light waves.

This displacement of light waves causes the wearer to appear to be from 1-ft to 2-ft from his or her actual position. Any attack by missile or melee strike which is aimed at the wearer will automatically miss the first time.

This can apply to first attacks from multiple opponents only if the second and successive attackers were unable to observe the initial displacement miss.

Thereafter the cloak affords +2 protection, i.e. 2 classes better on armor class, as well as +2 on saving throw dice versus attack forms directed at the wearer (such as spells, gaze weapon attacks, spitting and breath attacks, etc. which are aimed at the wearer of the cloak of displacement).

Note that 75% of all cloaks of displacement are sized for humans or elves (persons 5-ft to 6-ft or so tall), and but 25% are sized for persons of about 4-ft height (dwarves, gnomes, halflings).