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The Chest of the Mundane is a gilded chest that makes items in it appear to be mundane objects.
Location
The chest can be found on the northern balcony of the main floor of the Arcane Tower in the Underdark region of Act 1. (The main floor is the one with the large main gate guarded by Arcane Turrets.)
Properties
While it looks like a regular gilded chest, the Chest of the Mundane is actually a magical chest that makes any items stored in it appear to be completely mundane objects, such as a mug, ladle, plate, and so on. Its effects can be negated by the anti-magic aura of a Sussur Petal, or by simply by taking the items out of it.
Notes
When the player first interacts with the chest by putting something in it or taking something out, the main character may remark that it is a "Chest of Transformation." Tough irrelevant to game mechanics, it's unclear in terms of lore whether the chest merely creates an illusion upon the appearance of items stored within, or temporarily transforms them into a different physical object.
Minor glitch as of Patch 6, Hotfix 19: Interacting with the chest within the aura of a Sussur Petal will prevent your character from "realizing" what the chest is. Interact with the storage of the chest (putting something in or taking something out) without a Sussur Petal nearby to gain 25XP.