This appears as a simple blue nightcap, with nothing apparently special about it. However, when someone places it on their head, they instantly fall into an strange waking sleep. They remain lucid and capable of their normal movement and actions and can still be attacked, and their eyes still remain open, yet cloudy; an unknowing observer may think them still awake, but they are in fact asleep. While they sleep, they will experience a dream that mimics the world around them. The only difference is that while in the dream, the cap will no longer be on their head, and they will have no memory of ever possessing it. As such, they cannot doff the cap themselves. Should the cap be taken off by an outside force, the wearer will wake up, unharmed but a little confused. 

Should the wearer die completely while wearing The Sleepwalker's Nightcap, they will instead wake up from their magical sleep, and everyone in their party will recover all of their Hit Points, recover any spent Spell Slots, and items that were damaged or broken are fully repaired. Fallen or dead party members will be similarly replenished. This can only happen once; after the first death, the cap will revert to a plain old nightcap. This effect does not apply if the cap is simply removed. 

Notes: Headwear