Underwater Camouflage. The squid has advantage on Dexterity (Stealth) checks made while underwater.

Water Breathing. The squid can breathe only underwater.

Tentacles. Melee Weapon Attack: +7 to hit, reach 10ft., one target. Hit: (2d6 + 3) bludgeoning damage. If the target is a creature, it is grappled (escape DC 16). Until this grapple ends, the target is restrained, and the octopus can't use its tentacles on another target.

Beak. Melee Weapon Attack: +5 to hit, reach 5 ft., one target. Hit: (3d10 ) piercing damage.

Ink Cloud (Recharges after a Short or Long Rest). A 20-foot-radius cloud of ink extends all around the octopus if it is underwater. The area is heavily obscured for 1 minute, although a significant current can disperse the ink. After releasing the ink, the octopus can use the Dash action as a bonus action.