This little weapon operates just like a standard +1 dagger until it comes within sighting distance of any evil-intentioned monster. Then it will begin calling out, in a very loud, high-pitched voice, to these nearby evil creatures in their native tongue, and will curse and insult them intolerably. If the encountered creature does not speak any language, the dagger will emit a screaming wail sounding remarkably like a poor, defenseless animal waiting to be eaten. This dagger can easily "teleport" into a character's possessions, like any cursed weapon, if the owner makes a simple attempt to discard it.
Source: Dragon Magazine #77, 1983, page 21
Proficiency with a dagger allows you to add your proficiency bonus to the attack roll for any attack you make with it.
Notes: Bonus: Magic, Finesse, Light, Thrown
This sounds quite fun and also potentially useful.
Yep. Would seriously consider the voice the dagger uses is that of the character. That way, the party initially thinks the character is yelling all the insults. Though an enterprising character would use the "teleport" function and treat it like a returning dagger.