Zelda's Sword is a one-handed sword that is equal in strength to a Nordic Sword, weighs almost as much as a Dwarven Dagger, and functions much like a Silver Sword in that it is effective against undead. By default, Zelda's Sword is found without a scabbard.
The scabbard serves as a separate weapon, behaving like a dagger by default. Taking the scabbard to an Alteration Table can change it between a dagger and a mace weapon.
Playing Zelda's Round with the Ocarina of Time will take the scabbard and combine it with the sword, or remove it and make the scabbard a weapon again.
Location
Zelda's Sword is located in the Triforce Shrine in the Ruptured Towers, resting on top of Zelda's Coffin, behind the shrine itself.
Lore
Zelda's Sword was used by Zelda during the Last Great War of Hyrule and was intended as her last line of defense. If she could not be protected and could not defeat a foe with magic, she would resort to using the sword. The scabbard was designed to be wielded as its own weapon to give Zelda more options in battle, as well as to allow her to give a weapon to an ally. In Wisdom, Power, and Emotion, Zelda uses her sword in her final battle with Ganon.
Background and Inspiration
The model for Zelda's Sword was made by fcp078, who also designed Zelda's Scabbard to JKalenad's request. No canon exists for the appearance of Zelda's Scabbard. Zelda's Scabbard was intended to make Zelda's Sword more unique, and to show Zelda's depth of preparedness and self-defense.
Zelda's Sword is based on the sword wielded by Zelda in Twilight Princess. The sword was often requested by users of the mod.